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Question

Economics Question on Production Function

Which of the following production functions is NOT homogeneous of degree one?

A

Q=aL+bK

B

Q=aL34K12Q=aL^\frac{3}{4}K\frac{1}{2}

C

Q=23KLQ=23\sqrt{KL}

D

Q=A[αL−β+(1−α)K−β]−1βQ=A\left[αL^{-β}+(1-α)K^{-β}\right]^\frac{-1}{β}where 0<α<1

Answer

Q=aL34K12Q=aL^\frac{3}{4}K\frac{1}{2}

Explanation

Solution

The correct option is(B): Q=aL34K12Q=aL^\frac{3}{4}K\frac{1}{2}