Question
Ā If a Cobb-Douglas production is Q = K0.4
L0.6 the function isSolution
Q = K0.4 L0.6 Increase inputs by l Q = ( l K)0.4 ( l L)0.6 = l K0.4 L0.6 = l Q So, output also increases by the same amount. Hence, Constant returns to scale
Which of the following combination is incorrect?
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