Homothetic Production Functions of a Firm

The broad class of monotonic increasing functions of homogeneous production functions, which includes also the underlying homogeneous functions, is called homothetic. If the production function is homogeneous (of any degree), the firm's isoclines including long-run expansion path would be straight lines from the origin. The homothetic production function has the same isoquants as those of its underlying homogeneous function, although, [...]