Which of the following functions has a degree of homogeneity not equal to unity?
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2 marks, −0.5MicroeconomicsProduction and returns to scaleReturns to scale and homogeneityModerateabout 2 min
JNU SSS 2015 Question 50: Production and returns to scale
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Which of the following functions has a degree of homogeneity not equal to unity? (A) Q = 100K^(1/4)L^(3/4) (B) Q = 20K^(0·5)L^(0·5) (C) Q = K² + 2KL + L² (D) Q = (K² + 2KL + 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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