Cobb-Douglas Production Functions Can Never Possess Varying Returns to Scale

question 53

True/False

Cobb-Douglas production functions can never possess varying returns to scale.

---

Definitions:

Nation's Currency

The legal tender or monetary system that a country uses for its economic transactions.

Tastes

The perceived preferences or desires of consumers or individuals, often influencing their behavior and choices.

Exchange Rates

The value of one currency expressed in terms of another currency, used to determine how much of one currency you can exchange for another.

Trade Deficits

A situation in which a country's imports exceed its exports, resulting in a negative balance of trade.