The Leontief production function:
A) implies inputs are used in variable proportions.
B) implies inputs are used in fixed proportions.
C) is Q = max {bK, cL}.
D) is Q = aK + bL.

Question

Quizplus · Accepted Answer

The Leontief production function assumes that inputs are used in fixed proportions, meaning that the quantity of output produced is directly proportional to the quantity of each input used. The function takes the form Q = min {aK, bL} or Q = min {aK1, bK2, cL}, where a, b, and c are constants and K1, K2, and L are inputs. This is in contrast to the Cobb-Douglas production function, which assumes that inputs can be used in varying proportions.

The Leontief Production Function