Consider the "Cobb-Douglas" production function given by Y = AKL¹-a where A > 0 and 0 < a < 1. Which of the following is FALSE? The marginal product of capital is positive The marginal product of labour is positive There is diminishing returns to capital There is decreasing returns to scale

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions
Section17.2: A Production Function And Economic Growth
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Consider the "Cobb-Douglas" production function given by Y = AKº L¹-a where A> 0 and
0 < a < 1. Which of the following is FALSE?
The marginal product of capital is positive
The marginal product of labour is positive
There is diminishing returns to capital
O There is decreasing returns to scale
Transcribed Image Text:Consider the "Cobb-Douglas" production function given by Y = AKº L¹-a where A> 0 and 0 < a < 1. Which of the following is FALSE? The marginal product of capital is positive The marginal product of labour is positive There is diminishing returns to capital O There is decreasing returns to scale
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