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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