Question 2
The Cobb-Douglas production function F(K,L)=KpLq
Never exhibits decreasing returns to scale
Shows constant returns to scale if p+q=1
Shows increasing returns to scale if p+q<1
Has constant marginal product of capital
Managerial Economics Quiz 1 19 Jul 2026 — Question 2
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Shows constant returns to scale if p+q=1
Question 2 of 22 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 1 paper sat on 19 Jul 2026, in the May 2026 term (Managerial Economics 16 Jul 26). It carries 1 mark.
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