When a production function has the form $$\mathrm { Q } = \mathrm { aL } + \mathrm { bK }$$ , we can say that:
A)the production function is linear and the inputs are perfect substitutes.
B)the production function is linear and the inputs are perfect complements.
C)the production function is linear and the inputs are used in fixed factor proportions only.
D)the production function is non-linear and the inputs are perfect substitutes.

Question

Quizplus · Accepted Answer

The given production function Q = aL + bK is linear in its inputs L (labor) and K (capital), and the inputs are perfect substitutes because the output can be increased by increasing either L or K independently, with each input contributing additively to the output.

When a Production Function Has the Form Q=aL+bK\mathrm { Q } = \mathrm { aL } + \mathrm { bK }Q=aL+bK

When a Production Function Has the Form $\mathrm { Q } = \mathrm { aL } + \mathrm { bK }$