Why is it important that we understand the idea of


Y = AF(L, K, H, N) is production function in which Y, output is a function of the variables on the right hand side (RHS) of the equation. What are the individual variables, which when added together result in output Y and what would the equation look like if there are constant returns to scale? Why is it important that we understand the idea of productivity as an economic concept?

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Business Economics: Why is it important that we understand the idea of
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