Multiple Choice
Which of the following is not a distinguishing characteristic of the Cobb-Douglas production function?
A) The function exhibits constant returns to scale.
B) The function exhibits diminishing returns.
C) Capital and labour both earn shares of total income equal to the value of their exponents in the production function.
D) Labours share of income cannot exceed 0.5.
Correct Answer:
Verified
Correct Answer:
Verified
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