What Do We Learn from the Shape of the Cobb-Douglas

question 3

Multiple Choice

What do we learn from the shape of the Cobb-Douglas production function?

• A)its slope falls as capital gets added
• B)the marginal product of capital declines as the capital stock increases
• C)there are diminishing returns to capital
• D)all of the above
• E)none of the above

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Definitions:

Dissonance

A state of conflict or inconsistency, typically referring to a clash between thoughts, beliefs, or attitudes.

Reinforcement Theory

A concept in psychology that emphasizes the role of reinforcing stimuli in encouraging desired behaviors by increasing the likelihood of their recurrence.

Outcome

refers to the final product or result attained from a process, action, or event which can be used to measure the effectiveness or success of the operation.

Stimulus

A stimulus is an event or object that elicits a sensory or behavioral response in an organism or system.