Thu 17 Jan, 2013 01:54 pm
A production function Y = F(A,K,L) shows how much output can be produced with a given amount of capital and labor. The production function can shift to affect overall national productivity. Example: changes in energy supplies or cost as is our present case.
Discussion: based on our present economic situation – “recession” – how will it negatively affect K? what impact would it have on our national production?
by the way Y=F(A,K,L) stands for:
F-"is a function of"
K- Capital Stock