Question: Question 1 The Cobb - Douglas production function i s given b y f ( x 1 , x 2 ) = A x 1

Question 1
The Cobb-Douglas production function is given byf(x1,x2)=Ax1ax2b.It turns out the types of
returns to scale of this function will depend on the magnitude ofa+b. Which values ofa+b
will be associated with the different kinds of returns to scale (i.e. constant, increasing and
decreasing)?[5 points]
Question 1 The Cobb - Douglas production function

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