Which of the Following Statements Is True About the Production

question 66

Multiple Choice

Which of the following statements is true about the production function Y =F(L,K) ?

• A)Output increases only when both labor and capital increase.
• B)An increase in labor causes output to increase but an increase in capital will not cause output to increase unless it is accompanied by an increase in labor.
• C)An increase in capital causes output to increase but an increase in labor will not cause output to increase unless it is accompanied by an increase in capital.
• D)An increase in capital causes an increase in capital.
• E)It is possible for output to increase if capital increases, even if there is no change in the labor input.

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Definitions:

Functional Plan

A detailed, department-specific plan that outlines the objectives, strategies, and actions for achieving functional goals.

Objective Advantage

A definite, measurable benefit that one option or situation has over others, based on factual evidence.

Strategic Thinking

The ability to analyze the present state of an organization, envision a desired future, and plan the necessary steps to achieve this future state.

SWOT Analysis

A strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.