Assuming constant returns to scale,the equation,Y = A(t)F(K,N)can be rewritten as

Question

Quizplus · Accepted Answer

Under the assumption of constant returns to scale, the production function Y = A(t)F(K,N) can be rewritten in per worker terms as Y/N = A(t)f(K/N), which is option A. Option B, q = A(t)f(k), is essentially a restatement of option A using different symbols (q for output per worker and k for capital per worker), indicating that both A and B are correct representations of the production function under constant returns to scale. Hence, the correct answer is D, which includes both A and B.

Assuming Constant Returns to Scale,the Equation,Y = A(t)F(K,N)can Be Rewritten