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The Original Cobb-Douglas Function Was Given As Q=αLρL1ρ\mathrm { Q } = \alpha \mathrm { L } ^ { \rho } \mathrm { L } ^ { 1 - \rho }

Question 11

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The original Cobb-Douglas function was given as Q=αLρL1ρ\mathrm { Q } = \alpha \mathrm { L } ^ { \rho } \mathrm { L } ^ { 1 - \rho } .It was subsequently rewritten as Q=αLρ1 Kρ2\mathrm { Q } = \alpha \mathrm { L } ^ { \rho 1 } \mathrm {~K} ^ { \rho2} .What benefit was derived in the revision?


A) the function becomes a non-linear relationship so it would fit to production curves having an "S" shape
B) returns to scale can be shown in the revision
C) returns to scale become constant
D) a and b only
E) a,b,and c

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