Multiple Choice
Which of the following is true?
A) The sum of the coefficients of capital and the total efficiency units of labor in a Cobb-Douglas production function is greater than 1.
B) The sum of the coefficients of capital and the total efficiency units of labor in a Cobb-Douglas production function is less than 1.
C) The Cobb-Douglas production function exhibits increasing returns to scale.
D) The Cobb-Douglas production function exhibits constant returns to scale.
Correct Answer:
Verified
Correct Answer:
Verified
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