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Calculates the optimal capital investment amount K.

Author: shiroeExecutions: 143
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Calculate the amount of capital relative to output.

Consider a Cobb-Douglas production function.
Given Y = c(K^a)(L^b), find the optimal amount of capital input K for a given output level Y.

Since c can be eliminated using the law of weighted marginal productivity equality, we will treat c = 1 here.
The factor prices r and w are input variables.
The exponents a and b should be entered as fractions.
Output Y, the exponent a of capital input K, the exponent b of labor input L,
the capital (rental) cost r, and the wage (rate) w are positive numbers.
Y
Production volume
The numerator of a
(a is a power of K)
the denominator of a
(a is a power of K)
The numerator of b
(b is a power of K)
The denominator of b
(b is a power of K)
r
Cost of Capital
w
　Wages
K Optimal Capital Investment
R6 (2024). 01/16 (Tue)_K_001

Since the Cobb-Douglas production function is symmetric with respect to K and L, it can be rewritten.

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