Assume That a Manufacturer Has Productivity Function P(l, C) Where $\frac { \partial \mathrm { P } } { \partial \mathrm { l } }$

question 76

Multiple Choice

Assume that a manufacturer has productivity function P(l, c) where l and c are the amounts of labor and capital utilized. Which of the following indicates that a slight increase in the amount of labor utilized will result in an increase in productivity of 3 units.

• A) \(\frac { \partial \mathrm { P } } { \partial \mathrm { l } }\) (100, 75) = 3
• B) P(10, 75) = 3
• C) P(1, 75) = 3
• D) \(\frac { \partial P } { \partial c }\) (100, 75) = 3
• E) none of these

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Definitions:

Discounted

The process of determining the present value of a payment or stream of payments that will be received in the future.

Present Value

The current value of a future amount of money or stream of cash flows, given a specified rate of return.

Rate Of Return

The increase or decrease in value of an investment within a set timeframe, represented as a percentage of the investment's starting price.

Discount Rate

The interest rate charged by central banks on loans they give to commercial banks or the rate used to discount future cash flows to their present value.