Scenario 12-1. An economy's production form takes the form Y = AF(L, K, H, N).
-Refer to Scenario 12-1. If the production function has the constant-returns-to-scale property, then if we know the values of A, K/L, H/L, and N/L, we also know the value of
A)output.
B)labor productivity.
C)A.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

If the production function has constant returns to scale, then output per worker (labor productivity) depends only on A, K/L, H/L, and N/L.