Suppose the Current Level of Output Is 5000 and the Elasticity

question 14

Multiple Choice

Suppose the current level of output is 5000 and the elasticity of output with respect to capital is 0.4.A 10% increase in capital would increase the current level of output to

• A)5020.
• B)5050.
• C)5200.
• D)5500.

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Definitions:

Period Of Time

A specific duration or length of time during which an event occurs or a condition exists.

Expenses

Costs incurred in the operations of a business that are necessary for earning revenue.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, often referred to as the net assets or shareholders' equity.

Assets

are resources owned by a business, having economic value and expected to provide future benefits.