Suppose the aggregate production function is given by the following: Y = N.Given this information,we know that labor productivity is represented by which of the following?

Question

Quizplus · Accepted Answer

Labor productivity is typically defined as output per worker. Given the production function Y = N, where Y is output and N is the number of workers (labor), the output per worker is Y/N. Since Y = N, Y/N simplifies to 1, indicating that each worker produces a constant amount of output, hence option D (1) is the correct representation of labor productivity in this context.

Suppose the Aggregate Production Function Is Given by the Following