12. In the following production function, Y-S(K, NA), suppose A increases by 10%. This increment in A implies that A. the same output can be produced with 10% less labor. B. the effective quantity of labor has increased by 10%. C. output will increase by less than 10%. D. all of the above

12. In the following production function, Y-S(K, NA), suppose A increases by 10%. This increment in A implies that A. the same output can be produced with 10% less labor. B. the effective quantity of labor has increased by 10%. C. output will increase by less than 10%. D. all of the above

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Costs And The Supply Of Goods

Section: Chapter Questions

Problem 9CQ

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Question

12. In the following production function, Y-f(K,NA),
suppose A increases by 10%. This increment in A
implies that
A. the same output can be produced with 10% less labor.
B. the effective quantity of labor has increased by 10%.
C. output will increase by less than 10%.
D. all of the above

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