Answer to Activity Requirment question


Since in the Y industry the production function is Qy = 10 Ly, each worker produces 10 units of output in a period of time.

Therefore, it takes a worker 1/10 of a period of time to produce one unit of output, as may be seen from the equation:

Ly = (1/10) Qy

Note that the activity requirement will alwaysbe the reciprocal of the labor productivity coefficient. Back to the main text