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Suppose the rm's production set is generated by a production function f : R1 > RT, where R1 represents as inputs, and R represent or
Suppose the rm's production set is generated by a production function f : R1 > RT, where R1 represents as inputs, and R\" represent or outputs. Let Y = {(m) e In x R1\" = y 5 no}. Suppose f((ln) = 0m and x} :_> f(:r') whenever :r 3 m'. Prove the following: 2. Suppose m : 1. Y satises constant returns to scale if and only if f is homogeneous of degree one, i.e. oor) 2 ax) for all a 3_> 0
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