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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

When the Parameter of the Cobb-Douglas Production Function