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Research Article Open access CC BY 3.0

Impacts of Labor and Capital on Manufacturing Production Function

Rohitha Goonatilake, Susantha Herath

Journal of Economics, Management and Trade · pp. 158–172 · Published 26 Oct 2013

10.9734/BJEMT/2014/5619

Abstract

In essence, the power of compounding, together with the effect of discounting, has resulted in calculations of sinking funds and amortization possible. A greater aspect of this concept has allowed the business world to flourish and, at the same time, borrowing, financing, and mortgages have become extensively feasible. In this paper, we will attempt to provide a glimpse of these business concepts using concrete examples and calculations that use mathematical concepts. The Cobb-Douglas production function is given special consideration with a collection of related factors associated with this topic such as elasticity of demand and impacts of labor unions. Furthermore, in terms of the Cobb-Douglas Production Function, the behaviors of  for the different choices of  are significantly linear. An economic scenario in which unskilled and professionals are taken into account, the elasticity of the marginal utility function follows a linear, exponential, and logarithmic relationship for various choices of parameter.

Sinking funds amortization calculus future and present values Cobb-Douglas production function

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