Which of the following production functions are homethetic? Which are homogeneous? Briefly explain. [Hint: use definitions...

 

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Which of the following production functions are homethetic? Which are homogeneous? Briefly explain. [Hint: use definitions A.13 and A.14 in Appendix A.] 1. (z) = 21 22 2. 3. 4. 20.10.2 5. 6. (z) = log 1 + 2log 22 (z) = 20.5 +229.5 (z) = exp (20.5 29.5) (z) = [21-A10.5+ [22-k10.5,21 ≥k, 22 ≥k, (z) = 0 otherwise. 0.1 (z) = 2.¹ +29.2 In two of these six cases the pattern of the isoquant map is exactly the same which two? Which of the following production functions are homethetic? Which are homogeneous? Briefly explain. [Hint: use definitions A.13 and A.14 in Appendix A.] 1. (z) = 21 22 2. 3. 4. 20.10.2 5. 6. (z) = log 1 + 2log 22 (z) = 20.5 +229.5 (z) = exp (20.5 29.5) (z) = [21-A10.5+ [22-k10.5,21 ≥k, 22 ≥k, (z) = 0 otherwise. 0.1 (z) = 2.¹ +29.2 In two of these six cases the pattern of the isoquant map is exactly the same which two?

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3 and 4 Both are homogeneous of degree 1 1 and 2 are homethetic but not homogeneous 5 is neither hom... View the full answer