Which of the following functions are homogeneous of degree 1 (i.e. linear homogeneous)?
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4 marks, −1MicroeconomicsProduction and returns to scaleReturns to scale and homogeneityModerateabout 1 min
CUET-PG 2020 Question 31: Production and returns to scale
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Which of the following functions are homogeneous of degree 1 (i.e. linear homogeneous)? (A) Q = 100 K^(1/4)L^(3/4) (B) Q = 10 L¹⁻ⁿ (C) Q = K² + 2KL + L² (D) Q = (K² + 2L + L²)^(1/2)
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What this question tests
This question is on Returns to scale and homogeneity, part of Production and returns to scale in Microeconomics.
How output changes when all inputs scale up, including Euler's theorem and the degree of homogeneity.
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