The productivity function differs from the production function because
A)all variables are measured in per-worker terms.
B)it illustrates the effect of technological change.
C)the productivity function is not subject to diminishing returns.
D)the productivity function is not influenced by changes in labor.
E)the productivity function does not measure output.

Question

Quizplus · Accepted Answer

The productivity function differs from the production function because all variables are measured in per-worker terms. The production function, on the other hand, shows the maximum output that can be produced with different combinations of inputs, without necessarily taking into account the number of workers involved.

The Productivity Function Differs from the Production Function Because