In the production function $Y = F ( K , L ) = \bar { A } \bar { K } ^ { 1 / 3 } L ^ { 2 / 3 }$
, $\bar { A }$
represents a productivity parameter.

Question

In the production function $Y = F ( K , L ) = \bar { A } \bar { K } ^ { 1 / 3 } L ^ { 2 / 3 }$ 
, $\bar { A }$ 
represents a productivity parameter.

Quizplus · Accepted Answer

In the given production function, $\bar { A }$ is a constant that represents the level of technology or productivity, affecting how efficiently inputs $K$ (capital) and $L$ (labor) are transformed into output $Y$.

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