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Suppose the production function is given by the equation: Y space equals space K asterisk times square root of L. end root In addition, we
Suppose the production function is given by the equation: Y space equals space K asterisk times square root of L. end root In addition, we also know that the annual rate of increase in labor input, L, is 1%, and the annual rate of increase in capital input, K is 1%, then the annual rate of change of the average product of labor, Y space divided by space L space comma is: (Hint: use the relationship, for any variable x, x space equals space square root of x space asterisk times space square root of x space.) A. +1%. B. - 1% C 0% D. none of the above
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