Multiple Choice
Which of the following is not one of the strengths of the Cobb-Douglas production function?
A) Both marginal product and returns to scale can be estimated from it.
B) It can be converted into a linear function for ease of calculation.
C) It shows a production function passing through increasing returns to constant returns and then to decreasing returns.
D) The sum of the exponents indicates whether returns to scale are increasing,constant or decreasing.
Correct Answer:
Verified
Correct Answer:
Verified
Q40: Which of the following is not true
Q41: Increasing returns to scale result when<br>A)in the
Q42: If the price of capital is $24,the
Q43: When the exponents of a Cobb-Douglas production
Q44: The "Law of Diminishing Returns" states that<br>A)additional
Q46: Which of the following indicates when Stage
Q47: If a firm used a combination of
Q48: The perfect substitution of two inputs implies
Q49: If a firm finds itself operating in
Q50: If a production function is given by