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In case of a homogeneous production function, the expansion path is:

  • A.Convex
  • B.Concave
  • C.Linear
  • D.Curvilinear

Answer: C

A homogeneous production function has the property that scaling all inputs by a factor scales the output by a power of that factor, so the marginal rate of technical substitution is the same along any ray from the origin. The isoclines (the expansion paths) are therefore straight lines through the origin, so the expansion path is linear. A convex, concave or curvilinear path would arise for a non homogeneous function. The answer is linear, option C.

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