If the production function Y = A • (K,L) is divided by L, then
A)(Y/L) = A•f(K/L).
B)output per capita equals technology times a function of the capital labour ratio.
C)y = A•f(k).
D)all of the above.

Question

Quizplus · Accepted Answer

Dividing the production function Y = A • (K,L) by L yields a function of output per worker (Y/L) as a function of the capital-labor ratio (K/L), where A represents technology. This is consistent with all the given statements, as they describe the same relationship using different notations or phrases.

If the Production Function Y = a • (K,L) Is