How Much Do Outputs Increase When Labor and Capital Increase

question 49

Multiple Choice

How much do outputs increase when labor and capital increase from 1 to 2 units for the following production function ,q = 10L^0.5K^0.3?

• A) 7.4 units
• B) 7 units
• C) 8 units
• D) None of the above.

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Definitions:

Constant Dividend

A policy in which a firm aims to pay out a fixed dividend amount to shareholders regularly.

Constant Dividend

A Constant Dividend refers to a fixed amount of money paid out to shareholders of a corporation's profits on a regular basis.

Market Rate

The prevailing interest rate or price available in the marketplace for goods, services, or securities.

Annual Dividend

The total amount of dividends a company pays out to its shareholders in one year.