Question: Suppose the production function is Cobb Douglas, then A. Increasing both capital and labor by a factor of 1.3 raises output by less than 1.3

Suppose the production function is Cobb Douglas, then

A. Increasing both capital and labor by a factor of 1.3 raises output by less than 1.3

B. If TFP falls by a factor X, then the return to capital also falls by factor X.

C. The share of output that corresponds to workers compensation increases with the Total

Factor Productivity.

D. None of the above/multiple of the above

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