Which of the following properties may not necessarily hold for Cobb-Douglas production functions? 1. Diminishing MRTSL.K. II. Diminishing marginal product of labor or diminishing marginal product of capital. III. Both L and K are needed to produce a positive amount of output.

Which of the following properties may not necessarily hold for Cobb-Douglas production functions? 1. Diminishing MRTSL.K. II. Diminishing marginal product of labor or diminishing marginal product of capital. III. Both L and K are needed to produce a positive amount of output.

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

Which of the following properties may not necessarily hold for Cobb-Douglas
production functions?
1. Diminishing MRTSL,K.
II. Diminishing marginal product of labor or diminishing marginal product of capital.
III. Both L and K are needed to produce a positive amount of output.
III only
I only
Il only
Neither I, II, nor III
I and III only
II and III only
I, II, and III
I and II only

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