utility-functionDo Cobb-Douglas utility functions guarantee no corner solution?
These functions look like $x^ay^{1-a}$, but I’m not sure.
Well, a Cobb-Douglas utility/indifference curve will never intersect/touch the axes, as it is asymptotic to both of them, so a pair of goods where one of them is zero (thus being a corner solution) will not be optimal.
P.S. The special case of Cobb-Douglas function you are describing is that of constant returns to scale, where utility is the “output” you get; the answer above should hold regardless of whether the returns are decreasing, constant, or increasing to scale.
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