For Students · Cobb-Douglas
Cobb-Douglas for a comparative-advantage trade
Built for students learning it for a class or exam. See the concept move instead of memorizing formulas — and check your homework intuition. Simulate a comparative-advantage trade live below — adjust the inputs and watch it respond, right in your browser.
Cobb-Douglas ProductionLive
optimal input mix
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The Cobb-Douglas function Q = A·Kᵅ·L¹⁻ᵅ describes how capital and labor combine to make output. Isoquants show input mixes yielding the same output; the budget line shows what you can afford. Production is maximized where the budget line just touches the highest isoquant — the cost-minimizing input mix, splitting spending by the exponents.
Data Inspector
Optimal capital K12.5
Optimal labor L16.7
Output Q14.4
Governing equation
Reading this result: Cost-minimizing plan spends 50% of the budget on capital and 50% on labor — the exponents fix these shares no matter what r and w are; prices only change how many units of each that money buys.
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- Is this good for students?
- Yes — this version of "Cobb-Douglas for a comparative-advantage trade" is framed for students learning it for a class or exam. See the concept move instead of memorizing formulas — and check your homework intuition.
- Do I need to install anything?
- No. It runs in any modern browser, free, with no account required.