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Very usefully Chanel, thanks a lot!
good job, thank you!
Excellent video. You used homogeneity at the end if I am not wrong.
Yes- I didn't use that word specificially-- but Cobb Douglas functions are "Homogenous of degree" (add the two exponents). So, if you add the two exponents and get 1, the function is homogenous of degree 1, implying constant returns to scale.
Very usefully Chanel, thanks a lot!
good job, thank you!
Excellent video. You used homogeneity at the end if I am not wrong.
Yes- I didn't use that word specificially-- but Cobb Douglas functions are "Homogenous of degree" (add the two exponents). So, if you add the two exponents and get 1, the function is homogenous of degree 1, implying constant returns to scale.