Consider a Cobb Douglas production function where K and L are respectively the capital and labo...........

Economics-I Theory of Production and Cost

Consider a Cobb - Douglas production function $\small Y = A K^{\alpha }L^\beta {}$ where K and L are respectively the capital and labour to produce output Y. Show that if all the factors are paid according to their marginal products, the. total product will be exhausted if $\small \alpha + \beta = 1$ . (50 words) (5 Marks)