Economics · Production Functions
A standard linear homogeneous Cobb-Douglas production function Q = A Kα L1-α exhibits which of the following returns to scale?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Negative returns to scale
- 2Decreasing returns to scale
- 3Constant returns to scale✓
- 4Increasing returns to scale
Correct answer
Constant returns to scale
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