Is this function, Q = aLβ1Kβ2
Question 1Answer
a.
if the amount of labor input (L) is increased by 1 percent, the output will increase by 1 percent
b.
if the amount of labor input (L) is increased by 1 percent, the output will increase by β1 percent
c.
the marginal product of labor (L) is equal to β1
d.
the average product of labor (L) is equal to β2