Economics · Production Theory

In a Cobb-Douglas production function of the form q = A × x1α × x2β, if α + β > 1, then the production function exhibits:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Cannot be determined on the basis of this information
2Decreasing returns to scale
3Constant returns to scale
4Increasing returns to scale✓

Correct answer

Increasing returns to scale

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In a Cobb-Douglas production function of the form q = A × x1α × x2β, if α + β > 1, then the production function exhibits:

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In a Cobb-Douglas production function of the form q = A × x1α × x2β, if α + β > 1, then the production function exhibits:

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