Question:
Which of the following production functions is NOT homogeneous of degree one?
Which of the following production functions is NOT homogeneous of degree one?
Updated On: Mar 9, 2024
- Q=aL+bK
- \(Q=aL^\frac{3}{4}K\frac{1}{2}\)
- \(Q=23\sqrt{KL}\)
- \(Q=A\left[αL^{-β}+(1-α)K^{-β}\right]^\frac{-1}{β}\)where 0<α<1
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The Correct Option is B
Solution and Explanation
The correct option is(B): \(Q=aL^\frac{3}{4}K\frac{1}{2}\)
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