If the production function per labour is Y/L = A x (K/L)^1/3 and L increases by 10%, while A and K stay constant, then:

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Quizplus · Accepted Answer

Given the production function Y/L = A x (K/L)^α, where α is a constant, an increase in L with A and K constant leads to a decrease in Y/L because the term (K/L) decreases. The specific percentage decrease cannot be directly inferred from the provided function without knowing the value of α, but since the options suggest a specific percentage change, and given the nature of such functions, a decrease is expected, not an increase.

If the Production Function Per Labour Is Y/L = a X