Economics · Theory of Distribution

According to Euler's Product Exhaustion Theorem under Constant Returns to Scale (CRS), the sum of factor shares equals:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Zero
2Greater than unity
3Unity (1)✓
4Less than unity

Correct answer

Unity (1)

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According to Euler's Product Exhaustion Theorem under Constant Returns to Scale (CRS), the sum of factor shares equals:

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According to Euler's Product Exhaustion Theorem under Constant Returns to Scale (CRS), the sum of factor shares equals:

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