-Based on the Table Above, Holding Labor Constant, What Do

question 105

Multiple Choice

$$\begin{array} { | l | l | l | l | l | l | } \hline & \mathrm { K } = 0 & \mathrm {~K} = 1 & \mathrm {~K} = 2 & \mathrm {~K} = 3 & \mathrm {~K} = 4 \\\hline \mathrm { L } = 0 & 0 & 0 & 0 & 0 & 0 \\\hline \mathrm { L } = 1 & 0 & 1 & 2 & 3 & 4 \\\hline \mathrm { L } = 2 & 0 & 8 & 16 & 24 & 32 \\\hline \mathrm { L } = 3 & 0 & 27 & 54 & 81 & 108 \\\hline \mathrm { L } = 4 & 0 & 64 & 128 & 192 & 256 \\\hline\end{array}$$
-Based on the table above, holding labor constant, what do you notice about the marginal productivity of capital?

• A)The marginal productivity of capital is always increasing.
• B)The marginal productivity of capital is always constant.
• C)The marginal productivity of capital is always decreasing.
• D)The marginal productivity of capital increases, then decreases.

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Definitions:

High Speed Rail

A type of passenger rail transport that operates significantly faster than traditional rail traffic, using specialized tracks and trains.

Breast Cancer

A type of cancer that develops from breast tissue, representing one of the most common cancers worldwide, especially among women.

Allocation

The process of distributing resources or assigning tasks among people, projects, or various components of an organization.

Scarce Means

The limited resources available to meet unlimited wants and needs in an economy, necessitating choices and priorities.