A production function that exhibits constant returns to scale is called a(n):
A)linear homogeneous production function.
B)Cobb-Douglas production function.
C)quadratic production function.
D)a linear production function.

Question

Quizplus · Accepted Answer

A linear homogeneous production function is the only one that exhibits constant returns to scale. In this type of production function, doubling the inputs will result in a doubling of output, regardless of the level of inputs used.

A Production Function That Exhibits Constant Returns to Scale Is