In the equation $Y = F ( K , L ) = \bar { A } \bar { K } ^ { 1 / 3 } L ^ { 2 / 3 }$ , the lack of a "bar" over the L means that it is:
A) an exogenous variable
B) an endogenous variable
C) a parameter
D) constant
E) equal to one

Question

Quizplus · Accepted Answer

In the given production function, $L$ is not "barred," indicating it is a variable that can change within the model, making it an endogenous variable.

In the Equation Y=F(K,L)=AˉKˉ1/3L2/3Y = F ( K , L ) = \bar { A } \bar { K } ^ { 1 / 3 } L ^ { 2 / 3 }Y=F(K,L)=AˉKˉ1/3L2/3

In the Equation $Y = F ( K , L ) = \bar { A } \bar { K } ^ { 1 / 3 } L ^ { 2 / 3 }$