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When Capital Increases By Δ\Delta K Units and Labor Increases By Δ\Delta

Question 16

Multiple Choice

When capital increases by Δ\Delta K units and labor increases by Δ\Delta L units, output ( Δ\Delta Y) increases by:


A) Δ\Delta K + Δ\Delta L units.
B) MPL + MPK units.
C) (MPK × Δ\Delta K) + (MPL × Δ\Delta L) units.
D) (MPL × Δ\Delta K) + (MPK × Δ\Delta K) units.

Correct Answer:

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