Question: Recall that a Cobb - Douglas production function has the form P = cLK with c , , > 0 . Economists talk about increasing
Recall that a CobbDouglas production function has the form P cLK with cEconomists talk about increasing returns to scale if doubling L and K more than doubles P constant returns to scale if doubling L and K exactly doubles P decreasing returns to scale if doubling L and K less than doubles P What conditions on the sum lead to a constant returns to scale?b decreasing returns to scale?Fully justify your answers mathematically.
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