Question: A company manufactures only one product. The quantity, q, of this product produced per month depends on the amount of capital, K, invested (i.e., the number of machines the company owns, the size of its building, and so on) and the amount of labor, L, available each month. We assume that q can be expressed as a Cobb-Douglas production function:
q = ckαLβ
Where c, α, β are positive constants, with 0