What Does the Cobb-Douglas Production Function Assume About the Input

question 56

Multiple Choice

What does the Cobb-Douglas production function assume about the input shares in the economy?

• A)the capital share is smaller than the labor share of income
• B)both the capital and labor shares of income are positive
• C)both the capital and labor shares of income remain relatively constant over time
• D)all of the above
• E)none of the above

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