Scenario 7-1. An economy's production form takes the form Y = AF(L, K, H, N).
-Refer to Scenario 7-1. 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

Question

Quizplus · Accepted Answer

If the production function has constant returns to scale, knowing A, K/L, H/L, and N/L allows us to determine labor productivity, which is output per worker (Y/L).