Which of the Following Is True

question 179

Multiple Choice

Which of the following is true?

• A) The sum of the coefficients of capital and the total efficiency units of labor in a Cobb-Douglas production function is greater than 1.
• B) The sum of the coefficients of capital and the total efficiency units of labor in a Cobb-Douglas production function is less than 1.
• C) The Cobb-Douglas production function exhibits increasing returns to scale.
• D) The Cobb-Douglas production function exhibits constant returns to scale.

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