In the Following Production Function,Y = F(K,NA),suppose a Increases by 20%.This

question 69

Multiple Choice

In the following production function,Y = f(K,NA) ,suppose A increases by 20%.This 20% increase in A implies that

• A)the same output can be produced with 20% less labor.
• B)the effective quantity of labor has increased by 20%.
• C)output will increase by less than 20%.
• D)all of the above
• E) both A and C.

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