The Production Function Is Concave in Capital Because

question 38

Multiple Choice

The production function is concave in capital because

• A) the contribution to production of each additional unit of capital decreases.
• B) the marginal product of capital is increasing.
• C) the marginal product of labor is decreasing.
• D) the cost of loans increases with their quantity.

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Definitions:

Low LPC Leader

A leadership style characterized by a primary focus on completing tasks and obtaining results over building relationships, according to the Least Preferred Coworker (LPC) theory.

Participative Leadership

A leadership style wherein the leader includes team members in the decision-making process, ensuring their opinions and suggestions are considered.

Supportive Leadership

A leadership style that focuses on providing encouragement, resources, and assistance to employees.

Contingency Theory

Fred Fiedler’s theory that states that the association between leadership orientation and group effectiveness is contingent on how favourable the situation is for exerting influence.