When and for the Cobb Douglas production function, returns to scale are
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4 marks, −1MicroeconomicsProduction and returns to scaleReturns to scale and homogeneityEasyabout 1 min
CUET-PG 2022 Question 37: Production and returns to scale
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When α = 3/4 and β = 1/4 for the Cobb Douglas production function, returns to scale are (A) Constant (B) Increasing (C) Decreasing (D) First increasing and then decreasing
Also written as: When alpha = 3/4 and beta = 1/4 for the Cobb Douglas production function, returns to scale are
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What this question tests
This question is on Returns to scale and homogeneity, part of Production and returns to scale in Microeconomics.
How output changes when all inputs scale up, including Euler's theorem and the degree of homogeneity.
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