Suppose the Aggregate Production Function Is Represented by Y =

question 2

Multiple Choice

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) 1/N.
• C) 1/Y.
• D) A.
• E) Y/N.

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Definitions:

Expenses

The economic costs that a business incurs through its operations to earn revenue.

Purchase Inventory

The process by which a business buys goods and materials for use in producing its products or for resale to customers.

Advertising

Advertising is the action of calling public attention to products, services, needs, etc., through paid announcements by an identified sponsor.

Business Transaction

Any activity or event that involves the exchange of goods, services, or funds between two or more parties that affects the financial position of a business.