Multiple Choice
Assuming a firm uses capital and labor to produce output, which of the following is not always a true statement?
A) Assuming the marginal products of labor and capital are greater than zero, doubling the inputs of capital and labor will lead to greater output.
B) Assuming the marginal products of labor and capital are less than zero, doubling the inputs of capital and labor will lead to less output.
C) Assuming the marginal products of labor and capital are greater than zero, doubling the inputs of capital and labor will lead to double the output.
D) Assuming the marginal products of labor and capital are greater than zero, doubling the input of capital and keeping the input of labor constant will lead to greater output.
Correct Answer:

Verified
Correct Answer:
Verified
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