### Cobb-Douglas Economics

1. Let Y=L^αK^1-α, 0<α<1; let y=lnY, l=lnL, k=lnK. a.Show that this production function is linear in its natural logarithms. b.Show that the instantaneous percentage change in out put is the weighted sum of the instantaneous change in L and K, with weights α and (1-α) 2. Suppose that the production function in Questio