Suppose the Aggregate Production Function Is Given by Y =

question 19

Multiple Choice

Suppose the aggregate production function is given by Y = AN. Given this information, we know that labour productivity is represented by:

• A) N/Y.
• B) 1/A.
• C) A.
• D) 1/N.
• E) Y/A.

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Definitions:

Financial Advantage

The benefit obtained from making specific financial decisions or investments, often measured in terms of profit, savings, or a more favorable financial position.

Variable Costs

Expenses that change in proportion to the business activity level.

Financial Advantage

The benefit gained in financial terms, likely leading to improved profitability or reduced expenses.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much revenue is contributing to fixed expenses and profit.