Assume the Production Function Is Represented by Y = F

Multiple Choice

Assume the production function is represented by Y = F (K, AN) . Given this production function and the constant returns to scale assumption, output will increase by 7% when which of the following occurs?

A) K and AN increase by 7%.
B) N or A increase by 7%.
C) K and A increase by 7%.
D) N and A increase by 7%.
E) K or AN increase by 7%.