View the step-by-step solution to:

# Constant returns for a Cobb-Douglas production function with two inputs Suppose that the production function is f(x1, x2)=Cxa1xb2, where a,b,C are...

1. Constant returns for a Cobb-Douglas production function with two inputs

Suppose that the production function is f(x1, x2)=Cxa1xb2, where a,b,C are positive constants.
a. For what positive values of a,b, and C are there decreasing returns to scale?

b. Constant returns to scale?

C. Increasing returns to scale?

All C>0 and a+b=1
All C>1 and a+b=1
All C>0 and ab<1
All C>0 and a+b<1
All C>0 and a+b>0
All C>0 and a+b>1
All C>1 and a+b>1

Dear Student, Please check the attached solutions of... View the full answer

===============================
1. Constant returns for a Cobb-Douglas production function with two inputs
Suppose that the production function is f(x1, x2)=Cxa1xb2, where a,b,C are positive...

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents