Assume the Production Function Is Represented by Y = F

Multiple Choice

Assume the production function is represented by Y = F (K, AN) . Now suppose the variable, A, increases by 20%. This implies that:

A) the same output can be produced with 20% more labour.
B) the same output can be produced with 20% less labour.
C) the same quantity of labour can produce half the output.
D) the same output can be produced with half the capital.
E) the same quantity of labour can produce twice the output.