Which of the Following Will Cause an Increase in the Marginal

question 75

Multiple Choice

Which of the following will cause an increase in the marginal product of capital (MPK) ?

• A)a decrease in the quantity of labor in use
• B)an increase in labor productivity
• C)a decrease in the quantity of capital in use
• D)all of the above
• E)none of the above

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Definitions:

Marginal Productivity

The additional output that is produced by adding one more unit of a particular input while holding all other inputs constant.

Complements In Production

Goods that are produced together or their production levels are directly linked; an increase in the production of one leads to an increase in the production of the other.

Substitute Resources

Alternative inputs or resources that can be used in place of another in the production process.

MRP

Material Requirements Planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes.