Multiple Choice
If the economy's production function is given by Output = A(physical capital) .3(human capital) .7(hours worked) .7
And human capital investments are such that human capital = ½ physical capital,then
A) the marginal product of capital is constant
B) the marginal product of hours worked is increasing
C) the marginal product of human capital is increasing
D) the marginal product of labor (human capital multiplied by hours) is constant
E) the marginal product of output is falling
Correct Answer:

Verified
Correct Answer:
Verified
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