Answer to Question #70399 in Economics of Enterprise for Charith
Question #70399
The marginal product becomes negative in the short run. At least one variable remains constant e.g. Capital. How can we prove this through the Cobb Douglas function?
Expert's answer
Cobb–Douglas production function is a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or more inputs, particularly physical capital and labor, and the amount of output that can be produced by those inputs.
If the marginal product becomes negative in the short run, then there is a decrease in production when the use of labor increases and at least one variable remains constant e.g. capital.
If the marginal product becomes negative in the short run, then there is a decrease in production when the use of labor increases and at least one variable remains constant e.g. capital.
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