In a Cobb-Douglas Production Function the Marginal Product of Capital

question 16

Multiple Choice

In a Cobb-Douglas production function the marginal product of capital will increase if:

• A) the quantity of labor increases.
• B) the quantity of capital increases.
• C) labor's share of output increases.
• D) average capital productivity decreases.

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Definitions:

Underground Stem

Also known as a rhizome, it's a type of stem that grows horizontally beneath the soil surface, often storing nutrients and producing new shoots.

Drupe

A type of fruit with a single seed or pit, surrounded by a fleshy outer part, examples include peaches, cherries, and plums.

Seed Coat

The outer protective layer of a seed that surrounds the embryo and provides defense against physical damage and disease.

Aggregate

A whole formed by combining several elements; often used to describe composite materials or sum totals in statistical analysis.