Consider the Production Function Q = Af(K, L)

question 17

Multiple Choice

Consider the production function Q = Af(K, L) . Which of the following statements is (are) TRUE?
I. An increase in total factor productivity growth is represented by an increase in K or L.
II. An increase in total factor productivity growth means that the same amount of output can be produced using fewer inputs.
III. If A increases by 10%, the amount of output produced will increase by 10%, holding the quantity of inputs fixed.

• A) II
• B) I, II, and III
• C) II and III
• D) I