Which of the following is not a characteristic of production technologies that can be described by the Cobb-Douglas production function?
A) The marginal product of an input divided by the average product of that input is constant.
B) The exponents will sum to one if returns to scale are constant.
C) Linear regression can be used to estimate the parameters of the function.
D) All of the above are characteristics of the Cobb-Douglas production function.

Question

Quizplus · Accepted Answer

All the options listed are indeed characteristics of the Cobb-Douglas production function. Option A describes the feature of constant elasticity of substitution, option B refers to the property of constant returns to scale when the sum of the exponents equals one, and option C is a methodological approach to estimating the parameters of the Cobb-Douglas function using statistical techniques.

Which of the Following Is Not a Characteristic of Production