Show that in the case of Cobb-Douglas production function with constant returns to scale, if each factor ofa b

9 = ALK

atb = 1 homogeneous function of degree one

BR =7JW

a – 1

= AGL , K

b

MPic =

a b – 1

k –

= AbL . K

payment to each factor; MPXXK + APK XL

a-1 b

YL = 09. 1 = Aab. KIL

dL

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