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Managerial Economics · Quiz 1 · 13 Jul 2025 · May 2025 term

Question 18: The Cobb-Douglas production function F(K,L)=K^(p)L^(q)

Question 18

+1 markOne correct option

The Cobb-Douglas production function F(K,L)=K^(p)L^(q)

  1. A

    Never exhibits decreasing returns to scale

  2. B

    Shows constant returns to scale if p+q=1

  3. C

    Has constant marginal product of labour

  4. D

    Has constant marginal product of capital

Show answer

Correct answer

  • B

    Shows constant returns to scale if p+q=1

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Question 18 of 21 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 1 paper sat on 13 Jul 2025, in the May 2025 term (IIT M DEGREE AN EXAM QDB2 13 July 2025). It carries 1 mark.

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