The production function $Y _ { t } = A _ { t } K _ { t } ^ { 1 / 3 } L _ { t } ^ { 2 / 3 }$
, where A_t is the stock of ideas, K_t is capital, and L_t is labor, assumes that A_t is rivalrous.

Question

The production function $Y _ { t } = A _ { t } K _ { t } ^ { 1 / 3 } L _ { t } ^ { 2 / 3 }$ , where A_t is the stock of ideas, K_t is capital, and L_t is labor, assumes that A_t is rivalrous.

Quizplus · Accepted Answer

The production function assumes that A_t, the stock of ideas, is non-rivalrous, meaning it can be used by multiple people or firms simultaneously without being depleted.

The Production Function Yt=AtKt1/3Lt2/3Y _ { t } = A _ { t } K _ { t } ^ { 1 / 3 } L _ { t } ^ { 2 / 3 }Yt​=At​Kt1/3​Lt2/3​

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