(I’m going through this and understanding where I made an error with my approach to α. I think I did make an error, but I’m trying to make sure I’m not still confused. Edit: I’ve figured this out, see my other comment.)
Wikipedia says Cobb-Douglas functions can have the exponents not add to 1 (while both being between 0 and 1). Maybe this makes sense here? Not an expert.
It shouldn’t matter in this case because we’re raising the whole value of E to λ.
(I’m going through this and understanding where I made an error with my approach to α. I think I did make an error, but I’m trying to make sure I’m not still confused. Edit: I’ve figured this out, see my other comment.)
It shouldn’t matter in this case because we’re raising the whole value of E to λ.