In the equation y $K \mathrm{X}^{\alpha} _\text { capital } \mathrm{X}^{\beta} _\text { labor }$ , K represents
A) the quantity of capital
B) a constant that shows how productive the technology is
C) the quantity of labor

Question

Quizplus · Accepted Answer

K in this context represents a constant that shows how productive the technology is, often referred to as the total factor productivity in the production function.

In the Equation Y KX capital αX labor βK \mathrm{X}^{\alpha} _\text { capital } \mathrm{X}^{\beta} _\text { labor }KX capital α​X labor β​

In the Equation Y $K \mathrm{X}^{\alpha} _\text { capital } \mathrm{X}^{\beta} _\text { labor }$