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Questions › CUET-PG › CUET-PG 2023 Shift 2 › Q37
4 marks, −1Microeconomics › Production and returns to scale › Returns to scale and homogeneityModerateabout 1 min

CUET-PG 2023 Shift 2 Question 37: Production and returns to scale

Which of the following production functions is NOT homogeneous of degree one?

  1. Q=aL+bKQ = aL + bKQ=aL+bK
  2. Q=aL3/4K1/2Q = aL^{3/4}K^{1/2}Q=aL3/4K1/2
  3. Q=23KLQ = 23\sqrt{KL}Q=23KL​
  4. Q=A[αL−β+(1−α)K−β]−1/βQ = A\left[\alpha L^{-\beta}+(1-\alpha)K^{-\beta}\right]^{-1/\beta}Q=A[αL−β+(1−α)K−β]−1/β where 0<α<10<\alpha<10<α<1

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Which of the following production functions is NOT homogeneous of degree one? 1. Q = aL + bK 2. Q = aL^(3/4)K^(1/2) 3. Q = 23√KL 4. Q = A[α L^(-β)+(1-α)K^(-β)]^(-1/β) where 0<α<1 (A) Q = aL + bK (B) Q = aL^(3/4)K^(1/2) (C) Q = 23√KL (D) Q = A[α L^(-β)+(1-α)K^(-β)]^(-1/β) where 0<α<1

Also written as: Which of the following production functions is NOT homogeneous of degree one? 1. Q = aL + bK 2. Q = aL^(3/4)K^(1/2) 3. Q = 23sqrt(KL) 4. Q = A[alpha L^(-beta)+(1-alpha)K^(-beta)]^(-1/beta) where 0<alpha<1

Production and returns to scale has come up 92 times in 6 exams since 2007.

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.

TestStop has 20 past-paper questions on this subtopic.

Take this paper as a timed mockMore on Returns to scale and homogeneity

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Question from the CUET-PG 2023 Shift 2 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.