In the production function Y = AF(K,N),A is ________,K is ________,and N is ________.
A)total factor productivity; the capital stock; the number of workers employed
B)total factor productivity; investment; the number of workers employed
C)the productivity of labor; the capital stock; the size of the labor force
D)the productivity of labor; investment; the size of the labor force

Question

Quizplus · Accepted Answer

In the production function Y = AF(K,N), A represents total factor productivity, which measures the efficiency with which inputs are used in production. K represents the capital stock, which includes physical assets like buildings and equipment used in production. N represents the number of workers employed.

In the Production Function Y = AF(K,N),A Is ________,K Is