Multiple Choice
Suppose the current level of output is 5000.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,a 10% increase in capital combined with a 5% increase in labor and a 5% increase in productivity would increase the current level of output to
A) 5015.
B) 5325.
C) 5575.
D) 6000.
Correct Answer:
Verified
Correct Answer:
Verified
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