Suppose the aggregate production function is represented by the following: Y = AN.Given this information,labor productivity is given by
A)Y.
B)N / A.
C)A / N.
D)A.
E) none of the above

Question

Quizplus · Accepted Answer

Labor productivity is often defined as output per worker. In the given aggregate production function Y = AN, where Y is the total output, A represents productivity (or technology factor), and N is the number of workers (labor), labor productivity is represented by A. This is because A directly influences the output per worker, indicating how productive each worker is given the level of technology or productivity factor.

Suppose the Aggregate Production Function Is Represented by the Following