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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