Tag Archives | Linearly Homogeneous Production Function

Let us suppose that a firm uses two inputs, labour (L) and capital (K), to produce its output (Q), and its production function is Q = f(L,K)                           (8.122) [where L and K are quantities used of inputs labour (L) and capital (K) and Q is the quantity of output produced] The function (8.122) is homogeneous of degree n if we [...]