Linear Production Function

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Linear Production Function

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Linear Production Functions EconGraphs Chapter 2 Technology and Production Functions 2 5 Linear Production Functions Suppose Chuck has two ways of fishing he can try to catch fish in his bare hands or by setting a net out If he collects fish with his hands he can catch 2 fish per hour If a production function is homogeneous of degree one it is sometimes called linearly homogeneous A linearly homogeneous production function with inputs capital and labour has the properties that the marginal and average physical products of both capital and labour can be expressed as functions of the capital labour ratio alone

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