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The linear production function describes a linear relationship between the inputs and the ooutput.
For example:
Q = aL
Q = aL + bK
Chart:
The linear production function has constant returns to scale.
Proof: Y = aK + bL Y’ = a (cK) + b (cL) = c (aK + bL) = c Y
The elasticity of substitution is ∞.
Discussion