Which of the following is not one of the strengths of the Cobb-Douglas production function?
A) Both marginal product and returns to scale can be estimated from it.
B) It can be converted into a linear function for ease of calculation.
C) It shows a production function passing through increasing returns to constant returns and then to decreasing returns.
D) The sum of the exponents indicates whether returns to scale are increasing, constant or decreasing.
C
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Economists call the physical cost of changing prices
A) menu costs. B) increasing profits. C) inflationary suffrage. D) the cost of doing business.
When many sellers are involved in selling their products in a market, the market structure may be which of the following? i. perfect competition ii. monopolistic competition iii. monopoly
a. (i) only b. either (i) or (ii) c. (ii) only d. (i), (ii), or (iii)