Which of the Following Profit Functions Exhibits a Linear Production

question 8

Multiple Choice

Which of the following profit functions exhibits a linear production function?

• A) π = P × K^0.75L^0.50 - 20L - 35K
• B) π = P × min(2L, 5K) - 20L - 35K
• C) π = P × (3K + 4L) - 20L - 35K
• D) π = P × (3K^0.5 + 4L^0.5)^1/0.2 - 20L - 35K

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