Question

Which is/are incorrect about the Cobb-Douglas production function: Y equals K to the power of alpha L to the power of 1 minus alpha end exponent (0 < alpha < 1 )? All are correct it increases in both K and L the share of total income that goes to capital and labor depend on the amount of K and L it exhibits diminishing marginal returns to both K and L it is constant returns to scale

Answer 1

As we know that,the Cobb-Douglas production function represents the relationship between two or more inputs - typically physical capital and labor - and the number of outputs that can be produced. It's a commonly used function in macroeconomics and forecast production.

Cobb–Douglas function gives diminishing returns to both labor and capital when each factor is varied in isolation. When the output increases exactly in proportion to an increase in all the inputs or factors of production, it is called constant returns to scale.

The correct option is (a).

All are correct.

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