The Cobb-Douglas production function implies:

Increasing return to scale

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Decreasing return to scale

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Constant return to scale

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Laws of returns

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Constant return to scale
The Cobb-Douglas production function implies to constant return to scale.
It reflects the relationship between its inputs and the outputs produced. It means calculating the impact of changes , the relevant efficiencies and the yield of production activities.

Suggest Corrections

Similar questions

When does a production function satisfy increasing returns to scale?

When does a production function satisfy constant returns to scale?

Explain the reasons for : (i) increasing returns to a factor and (ii) increasing returns to scale.

Join BYJU'S Learning Program