When a Production Function Has the Form Q = AL

question 7

Multiple Choice

When a production function has the form Q = aL + bK, we can say that

• A) the production function is linear and the inputs are perfect substitutes.
• B) the production function is linear and the inputs are perfect complements.
• C) the production function is linear and the inputs are used in fixed factor proportions only.
• D) the production function is non-linear and the inputs are perfect substitutes.

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