Problem
Suppose that the long-run production function which describes how labour and capital generate output is homothetic and displays constant returns to scale.
(a) Will the expansion path be upward sloping and convex for given input prices?
(b) Under what conditions will the long-run average cost curve be downward sloping?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.