Suppose the aggregate production function is represented by Y = AN.Which of the following expressions represents the number of additional workers required to increase production by one unit?
A)1 / A
B)Y / N
C)1 / N
D)1 / Y
E) none of the above

Question

Quizplus · Accepted Answer

The aggregate production function Y = AN implies that output (Y) is directly proportional to the number of workers (N) with a proportionality constant A. To increase production by one unit, the number of additional workers required is the reciprocal of A, which is 1/A.

Suppose the Aggregate Production Function Is Represented by Y =