Which of the following is not a distinguishing characteristic of the Cobb-Douglas production function?
A) The function exhibits constant returns to scale.
B) The function exhibits diminishing returns.
C) Capital and labour both earn shares of total income equal to the value of their exponents in the production function.
D) Labours share of income cannot exceed 0.5.
Correct Answer:
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Q1: All else equal,continued increases in the labour
Q3: The marginal product of capital is the
Q4: All else equal,as the labour supply increases,the
Q5: All else equal,as the capital stock increases,the
Q6: Suppose that the production function for the
Q7: In the Cobb-Douglas production function,the index of
Q8: The processes a firm uses to turn
Q9: All else equal,in an economy with an
Q10: The relationship between the inputs employed by
Q11: In the Cobb-Douglas production function Y =
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