Final answer:
The revision of the Cobb-Douglas function allows it to show and hold constant returns to scale, providing a more accurate representation of production processes and economies of scale.
Step-by-step explanation:
The revision of the original Cobb-Douglas production function was beneficial because returns to scale can be shown in the revision, and returns to scale become constant. The original function depicted a simple linear relationship, but the revision allows for a more accurate representation of production processes by acknowledging the non-linear, bowed-out shape of production curves. This more accurately reflects the idea that as scale increases, the average cost of production declines until a point of constant returns to scale is reached. This is consistent with the observation of economies of scale in the long run, where large-scale producers have an advantage, as the downward-sloping portion of the long-run average cost curve extends over a greater quantity of output. The revision of the function captures the reality that production efficiency changes with scale, which is critical in economic analysis.