The Original Cobb-Douglas Function Was Given As $\mathrm { Q } = \alpha \mathrm { L } ^ { \rho } \mathrm { L } ^ { 1 - \rho }$

question 11

Multiple Choice

The original Cobb-Douglas function was given as $\mathrm { Q } = \alpha \mathrm { L } ^ { \rho } \mathrm { L } ^ { 1 - \rho }$ .It was subsequently rewritten as $\mathrm { Q } = \alpha \mathrm { L } ^ { \rho 1 } \mathrm {~K} ^ { \rho2}$ .What benefit was derived in the revision?

• A) the function becomes a non-linear relationship so it would fit to production curves having an "S" shape
• B) returns to scale can be shown in the revision
• C) returns to scale become constant
• D) a and b only
• E) a,b,and c

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Definitions:

Third Birthday

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Implicit Memory

A type of memory in which previous experiences aid in the performance of a task without conscious awareness of these previous experiences.

Reconstructive

Pertaining to the process of rebuilding or forming an approximation of past events or experiences, often used in the context of memory.

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A British psychologist and the first professor of experimental psychology at the University of Cambridge, known for his work on memory and cognitive psychology.