When Capital Is Included in the Production Function

question 64

Multiple Choice

When capital is included in the production function,

• A)less output is produced with the same amount of labor.
• B)more output is produced with the same amount of labor.
• C)diminishing returns to labor are eliminated.
• D)the production function exhibits increasing returns to labor.
• E)the production function exhibits constant returns to labor.

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Extremely Short

A description of a very brief amount of time or a very small quantity; in economics, it may relate to short-term market observations.

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