Using a Cobb-Douglas Production Function,Y/N = (K/N)b,the Marginal Product of Capital

question 23

Multiple Choice

Using a Cobb-Douglas production function,Y/N = (K/N) b,the marginal product of capital is

• A)b(K/N)b-1.
• B)b(K/N).
• C)(K/N)b-1.
• D)(K/Y)b.

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Definitions:

Work in Process

A stage in the production process that includes goods partially completed; not yet ready for sale.

Factory Overhead

Indirect costs incurred during the manufacturing process, such as utilities, maintenance, and salaries, that are not directly tied to production.

Direct Labor Costs

Wages and benefits paid to employees who are directly involved in the production of goods or services.

Indirect Costs

Expenses not directly tied to the production of goods or services, such as overhead, rent, and administrative salaries.