State the Degree of Homogeneity of the Production Function $Q=7 K^{\frac{1}{4}}\left(5 L^{\frac{1}{2}} K^{\frac{1}{2}}+2 K^{\frac{3}{4}}\right)$

question 9

Multiple Choice

State the degree of homogeneity of the production function
$Q=7 K^{\frac{1}{4}}\left(5 L^{\frac{1}{2}} K^{\frac{1}{2}}+2 K^{\frac{3}{4}}\right)$

• A) \(\frac { 1 } { 2 }\)
• B) 1
• C) \(\frac { 3 } { 4 }\)
• D) \(\frac { 1 } { 4 }\)
• E) Not homogeneous

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Definitions:

Variable Operating Costs

Costs that fluctuate with the level of production or sales volume, such as materials and labor.

Labor Hour

A measurement of work output or productivity calculated as the amount of labor input in terms of hours expended.

Time and Materials Pricing

A pricing strategy where the customer pays for the time spent on a project and the materials used, commonly used in service and contracting industries.

Variable Costs

Expenses that fluctuate in direct proportion to changes in the level of business activity or production volume, such as raw materials and direct labor.