A production function of the form
exhibits constant returns to scale.

Name: A production function of the form exhibits constant returns to scale.
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Question

A production function of the form  
exhibits constant returns to scale.

Quizplus · Accepted Answer

A production function exhibits constant returns to scale if increasing all inputs by a certain factor results in an equal increase in output. The given production function is in the standard form of a Cobb-Douglas production function, which is known to exhibit constant returns to scale.

A Production Function of the Form