17 The expansion path for a homothetic production function a. is a straight line through the...
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17 The expansion path for a homothetic production function a. is a straight line through the origin with a slope greater than one if w> v. is a straight line through the origin with a slope less than one if w <v. is a straight line through the origin though its slope cannot be determined by w and v alone. b. с. d. has a positive slope but is not necessarily a straight line. 18 A firm whose production function displays increasing returns to scale will have an average cost curve that is a straight line through the origin. a curve with a positive slope. a curve with a zero slope. a curve with a negative slope. a. b. с. d. A linear total cost curve which passes through the origin implies that average cost is constant and marginal cost is variable. average cost is variable and marginal cost is constant. average and marginal costs are constant and equal. need more information to answer question. 19 a. b. c. d. 17 The expansion path for a homothetic production function a. is a straight line through the origin with a slope greater than one if w> v. is a straight line through the origin with a slope less than one if w <v. is a straight line through the origin though its slope cannot be determined by w and v alone. b. с. d. has a positive slope but is not necessarily a straight line. 18 A firm whose production function displays increasing returns to scale will have an average cost curve that is a straight line through the origin. a curve with a positive slope. a curve with a zero slope. a curve with a negative slope. a. b. с. d. A linear total cost curve which passes through the origin implies that average cost is constant and marginal cost is variable. average cost is variable and marginal cost is constant. average and marginal costs are constant and equal. need more information to answer question. 19 a. b. c. d.
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1 Option c is correct It is because the expansion path is the locus of all the costefficient combinations of inputs used in the process of production ... View the full answer
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