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Assume the Production Function Is Represented by Y = F

Question 53

Multiple Choice

Assume the production function is represented by Y = F (K, AN) and the number of workers is constant. Now suppose the state of technology variable, A, increases by 6%. This implies that which of the following variables will also increase by 6%?


A) Effective labour.
B) Capital.
C) Output.
D) All of the above.
E) None of the above.

Correct Answer:

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