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:

Undivided Interest

Ownership rights in a property shared by all co-owners, without any designated portion belonging to any one owner.

Executes

Carries out, completes, or performs a task, agreement, or legal document.

Delivers

The act of transferring possession of an item or completing a service as per an agreement or contract.

Tenants in Common

A form of co-ownership where each party owns a separate and undivided interest in the property, and upon death, their share passes to their heirs or estate, not the other co-owners.