The Expansion Path for a Constant Returns to Scale Production

question 14

Multiple Choice

The expansion path for a constant returns to scale production function

• A) is a straight line through the origin with a slope greater than one if w > v.
• B) is a straight line through the origin with a slope less than one if w < v.
• C) is a straight line through the origin though its slope cannot be determined by w and v alone.
• D) has a positive slope but is not necessarily a straight line.