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Suppose the Current Level of Output Is 5000 and the Elasticity

Question 14

Multiple Choice

Suppose the current level of output is 5000 and the elasticity of output with respect to capital is 0.4.A 10% increase in capital would increase the current level of output to


A) 5020.
B) 5050.
C) 5200.
D) 5500.

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