The Following Figure Shows Two Aggregate Production Functions

question 10

Multiple Choice

The following figure shows two aggregate production functions.

-Refer to the figure above.Which of the following best describes the difference between aggregate production functions 1 and 2?

• A) Human capital is higher for function 1.
• B) Physical capital stock is higher for function 1.
• C) The returns for increases in physical capital stock are higher in function 1.
• D) Better technology is employed in function 1.

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