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Constant Returns to Scale in the Matching Function Means That exm(Q,A)e^{xm(Q,A)}

Question 7

Multiple Choice

Constant returns to scale in the matching function means that, given any constant x > 0,


A) m(xQ, xA) = xm(Q,A) .
B) m(xQ, xA) > xm(Q,A) .
C) m(xQ, xA) < xm(Q,A) .
D) m(xQ, xA) = exm(Q,A) e^{xm(Q,A) } .
E) m(xQ, xA) = 1x \frac{1}{x} m(Q,A) .

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