If Y is total output, K is the capital stock and L is the total labor input stock, which of the following represents a production function?

Question

Quizplus · Accepted Answer

A production function shows the relationship between inputs (such as labor and capital) and outputs (total output). Therefore, Y (total output) is a function of both L (total labor input stock) and K (capital stock). Option B is incorrect because it shows K (capital stock) as a function of L (total labor input stock) and Y (total output). Option C is also incorrect because it shows L (total labor input stock) as a function of Y (total output) and K (capital stock).

If Y Is Total Output, K Is the Capital Stock