# Question: suppose iphones are produced using three input factors combined in...

###### Question details

Suppose iPhones are produced using three input factors combined in a Cobb-Douglas production function

where K is capital and Lu and Ls are unskilled and skilled
labour.

1. What assumptions on a, b, and c must be true for this production
function to exhibit constant returns to scale?

2. Given your answer in part a), explain why this production
function exhibits diminishing returns to any single factor (Hint:
use derivatives)