When the sum of exponents exceeds one
(a + b > 1)
in the Cobb-Douglas production function, it causes which one of the following?
1
Constant returns to scale
2
Increasing returns to scale
3
Decreasing returns to scale
4
Variable returns to scale
When the sum of exponents exceeds one
(a + b > 1)
in the Cobb-Douglas production function, it causes which one of the following?