The Parameter a Re-Scales the Production Function $f ( k , \ell ) = A \left( \alpha \ell ^ { - \rho } + ( 1 - \alpha ) k ^ { - \rho } \right) ^ { - \beta / \rho }$

question 4

True/False

The parameter A re-scales the production function $f ( k , \ell ) = A \left( \alpha \ell ^ { - \rho } + ( 1 - \alpha ) k ^ { - \rho } \right) ^ { - \beta / \rho }$ -- allowing us to transform a decreasing returns to scale production function to an increasing returns to scale production function.

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Definitions:

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