When the parameter
of the Cobb-Douglas production function equals one
A) output is more than proportional to capital: double the stock of capital per worker and the output per worker will more than double.
B) output is proportional to capital: double the stock of capital per worker and the output per worker will also double.
C) output is less than proportional to capital: double the stock of capital per worker and the output per worker will not quite double.
D) output is proportional to technology: double the stock of technology per worker and the output per worker will also double.
Correct Answer:
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