Question

Consider an economy described by the production function: Y=F(K,L)=K⁴ L⁶. What is the per-worker production function?

Answer 1

The per-worker production function is Y/L = K⁴.

Step-by-step explanation:

The per-worker production function is a way to determine how much output, in this case, Y, can be produced by each individual worker, represented by L, in the economy. To find the per-worker production function, divide the total production function, Y = F(K, L) = K⁴ L⁶, by the number of workers, L. This gives us the equation: Y/L = F(K, 1) = K⁴.

So, the per-worker production function is Y/L = K⁴.

For example, if we have 10 units of capital, K, and 5 workers, L, the per-worker production function would be (10⁴)0.5 = 1000 units of output per worker.