With a linear production function there is a:
A) perfect complementary relationship between all inputs.
B) perfect substitutable relationship between all inputs.
C) fixed-proportion relationship between all inputs.
D) variable-proportion relationship between all inputs.

Question

Quizplus · Accepted Answer

A linear production function implies that inputs can be substituted for one another perfectly, meaning there is a constant rate of substitution between inputs. This is characteristic of a perfect substitutable relationship between all inputs.

With a Linear Production Function There Is A