Assuming a Firm Uses Capital and Labor to Produce Output

question 46

Multiple Choice

Assuming a firm uses capital and labor to produce output, which of the following is not always a true statement?

• A)Assuming the marginal products of labor and capital are greater than zero, doubling the inputs of capital and labor will lead to greater output.
• B)Assuming the marginal products of labor and capital are less than zero, doubling the inputs of capital and labor will lead to less output.
• C)Assuming the marginal products of labor and capital are greater than zero, doubling the inputs of capital and labor will lead to double the output.
• D)Assuming the marginal products of labor and capital are greater than zero, doubling the input of capital and keeping the input of labor constant will lead to greater output.