The shape of this production function suggests that a in the production function Y =K"L1-a isA. equal to one.B. greater than one.OC. equal to zero.D. less than one.E. Not enough information is given. YK

As we increase the quantity of capital, the marginal product of capital continues to decrease. So,…

Answered: The shape of this production function…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The shape of this production function suggests that a in the production function Y =K"L-a is ) A. equal to one. B. greater than one. C. equal to zero. O D. less than one. E. Not enough information is given.