A production function is said to be _____, if, when each input factor is multiplied by a positive real constant k, the constant can be completely factored out:
A)homogenou
B)nonhomogenous
C)additive
D)heterogonous

Question

Quizplus · Accepted Answer

A production function is considered homogeneous if it exhibits constant returns to scale, meaning that multiplying each input by a constant factor results in output being multiplied by some power of that factor. This property allows the constant to be factored out, maintaining the proportionality of input-output relationships.

A Production Function Is Said to Be _____, If, When