Suppose you were given a production function for the nation of Pluto, Y = A(K.6)(L.4), where...
Suppose you were given a production function for the nation of Pluto, Y = A(K.6)(L.4), where Y is GDP per capita, A is Total Factor Productivity, K is physical capital per worker, and L is human capital per worker. Which of the following is true about this production function?
A.)There are diminishing returns to increases in Total Factor Productivity
B.)Pluto only needs human capital per labor to be above zero to have production in its economy
C.)There are diminishing returns to labor and capital
D.)All of the above are true.
Homework Answers
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Suppose you were given a production function for the nation of
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