Define linearly homogenous production function.
⇒A production function is said to be linear homogenous production function if is homogenous in the first degree i.e. if all factors of production are increase in given proportion, output also increase in the same proportion. Therefore production function with CRS is represent the linear homogenous production function.
If Q=f(x, y)
Now, increasing X and Y by ‘m’ times
mQ=f(mx, my) represents the linear homogenous production function.
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