The Cobb-Douglas production function is given by f(x 1 , x 2 ) = Ax a 1
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The Cobb-Douglas production function is given by f(x1, x2) = Axa1xb2. It turns out that the type of returns to scale of this function will depend on the magnitude of a+b. Which values of a + b will be associated with the different kinds of returns to scale?
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