Question
Assuming a Cobb-Douglas production function with constant returns to scale then, as K rises with L and A constant, it will be the case that:
- Assuming a Cobb-Douglas production function with constant returns to scale then, as K rises with L and A constant, it will be the case that:
a)the marginal product of labour will fall and the marginal product of capital will rise
b)both the marginal product of labour and the marginal product of capital will fall
c)the marginal product of labour will rise and the marginal product of capital will fall
d) the marginal product of capital will fall while the marginal product of labour will be unchanged
2.It is possible to write output per worker as a function of capital per worker because we assume
the production function
a)features a constant labour share of output
b) has constant returns to scale
c) has diminishing marginal returns
d) all of the above
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