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In the Cobb-Douglas Production Function (Q = α\alpha L β\beta 1 K

Question 1

Multiple Choice

In the Cobb-Douglas production function (Q = α\alpha L β\beta 1 K β\beta 2 ) :


A) the marginal product of labor (L) is equal to β\beta 1
B) the average product of labor (L) is equal to β\beta 2
C) if the amount of labor input (L) is increased by 1 percent, the output will increase by β\beta 1 percent
D) a and b
E) a and c

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