Which of the Following Statements Is True About the Production

Multiple Choice

Which of the following statements is true about the production function Y =F(L,K) ?

A) Output increases only when both labor and capital increase.
B) An increase in labor causes output to increase but an increase in capital will not cause output to increase unless it is accompanied by an increase in labor.
C) An increase in capital causes output to increase but an increase in labor will not cause output to increase unless it is accompanied by an increase in capital.
D) An increase in capital causes an increase in capital.
E) It is possible for output to increase if capital increases, even if there is no change in the labor input.