Question

What is the shape of expansion path in case of non-linear homogeneous production?? ​

Answer 1

expansion path will be a straight line through the origin whose slope depends on the ratio of factor prices. If the production function is non-homogeneous then the optimal expansion path will not be a straight line , even if the ratio of factor prices remain constant.

Answer 2

Answer:

expansion path will be a straight line through the origin whose slope depends on the ratio of factor prices. If the production function is non-homogeneous then the optimal expansion path will not be a straight line , even if the ratio of factor prices remain constant.