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Suppose that a production q = f(k,l) exhibits constant returns-to-scale. Since the production function exhibits constant returns-to-scale, then and q = f(k,l) must also be

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Suppose that a production q = f(k,l) exhibits constant returns-to-scale. Since the production function exhibits constant returns-to-scale, then and q = f(k,l) must also be homogenous of degree Using the result of Euler's theorem, that q = f(k,l) = fik + fil, which of the following best represents - ? 2 Ofit f* ( 4 ) 3 H O fit f* ( # ) 0 O fi - fk ( 4 ) Of* + fi ( 4 ) Using your expression for _ that you just derived, if fi > > then fk

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