Economics · Production and Costs
In a Cobb-Douglas production function q = A Lα Kβ, constant returns to scale occur when:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1α + β > 1
- 2α + β < 1
- 3α + β = 1✓
- 4α + β = 0
Correct answer
α + β = 1
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