A in the production function Y = A • F(K,L) is:
A)the marginal product of labour.
B)the capital to labour ratio (K/L).
C)the marginal product of capital.
D)the level of technology.

Question

Quizplus · Accepted Answer

A in the production function represents the level of technology. It represents the efficiency and productivity with which inputs are used. The level of technology is treated as a fixed factor in the short run and influences the marginal product of labor and capital. Therefore, option D is the correct choice.

A in the Production Function Y = a • F(K,L)