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Cobb-Douglas Function - Economics - Micro

  1. Apr 21, 2012 #1
    Hello,

    I have been learning about Cobb-Douglas Utility functions and Cobb-Douglas Production functions. Some of the reading I have incontured have left me confussed. Does anyone know how the utility function difffers from the production function in terms of explaining the exponents. I know that Cobb-Douglas production function's exponents measure returns to scale, but what I am confussed on is what do the utility function's exponents measure. Is it elasticity or still returns to scale? I know that they must be positive and add up to 1.

    If anyone could enlighten me on the differences that would be of great help.
    Thank you :)
     
  2. jcsd
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