The production function $Y = \bar { A } \bar { K } ^ { 1 / 3 } \bar { L } ^ { 2 / 3 }$ describes:
A) how any amount of labor and a particular amount of capital can be combined to generate output
B) how particular amounts of capital and labor can be combined to generate output
C) how any amount of capital and labor can be combined to generate output
D) how any amount of capital and a particular amount of labor can be combined to generate output
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

The production function describes how specific amounts of capital ($\bar{K}$) and labor ($\bar{L}$) can be combined to generate output ($Y$), given the technology level ($\bar{A}$).

The Production Function Y=AˉKˉ1/3Lˉ2/3Y = \bar { A } \bar { K } ^ { 1 / 3 } \bar { L } ^ { 2 / 3 }Y=AˉKˉ1/3Lˉ2/3

The Production Function $Y = \bar { A } \bar { K } ^ { 1 / 3 } \bar { L } ^ { 2 / 3 }$