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The Expansion Path for a Homothetic Production Function

Question 6

Multiple Choice

The expansion path for a homothetic production function:


A) is a straight line through the origin with a slope greater than one if w > v.
B) is a straight line through the origin with a slope less than one if w < v .
C) is a straight line through the origin though its slope cannot be determined by w and v alone.
D) has a positive slope but is not necessarily a straight line.

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