marginal proc capital means that as we add additional units of capital A. B. and labor, output will increase at a constant rate. and labor, output will increase, but at a decreasing rate. but hold labor constant, output

marginal proc capital means that as we add additional units of capital A. B. and labor, output will increase at a constant rate. and labor, output will increase, but at a decreasing rate. but hold labor constant, output

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ

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Question

1. The law of diminishing marginal product to
capital means that as we add additional
units of capital
A.
B.
and labor, output will increase at a
constant rate.
and labor, output will increase,
but at a decreasing rate.
but hold labor constant, output
C. will increase, but at an increasing
rate.

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