Suppose the Production Function Is Given by Q = 3K

question 95

Multiple Choice

Suppose the production function is given by Q = 3K + 4L.What is the marginal product of capital when 10 units of capital and 10 units of labor are employed?

• A) 3
• B) 4
• C) 11
• D) 45

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life, often used in calculating depreciation.

Modified Accelerated Cost Recovery

A tax depreciation system in the United States that allows the accelerated write-off of property under certain categories for tax purposes.

Tax Act of 1989

Legislation enacted to amend, revise, or change the tax laws existing at that time, specific to a given jurisdiction.

Depreciation Method

A methodical strategy for distributing the expense of a physical asset across its lifespan.