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.