Analyzing Shifts in \(A\) and \(\alpha\)

Shifts in \(A\) and their Effect on Output

First, let us plot a 3D surface of the Cobb-Douglas production function. Output, \(Y\) , will go on the vertical (or \(z\) ) axis. Capital and labor will go on the \(y\) and \(x\) axes, resp. The plot below plots the Cobb-Douglas function with \(A=2\), also showing \(A=1\) for reference.

[Following image is a 3D plot of Output increasing with Capital and Labor]