What do we learn from the shape of the Cobb-Douglas production function?
A)its slope remains constant as labor input increases
B)the marginal product of labor declines as the labor input falls
C)there are diminishing returns to labor
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The Cobb-Douglas production function, characterized by diminishing returns to labor, implies that as more labor is added, holding other factors constant, the additional output produced by the extra labor decreases.

What Do We Learn from the Shape of the Cobb-Douglas