Suppose the production function for good q is given by q = (k+1)¹/2 where k and I are capital and labor inputs: (a) The function exhibits diminishing marginal productivities in both inputs. (b) The function exhibits diminishing marginal productivities in capital but not in labor. (c) The function exhibits diminishing marginal productivities in labor but not in capital. (d) The function exhibits increasing marginal productivities in both inputs.

Suppose the production function for good q is given by q = (k+1)¹/2 where k and I are capital and labor inputs: (a) The function exhibits diminishing marginal productivities in both inputs. (b) The function exhibits diminishing marginal productivities in capital but not in labor. (c) The function exhibits diminishing marginal productivities in labor but not in capital. (d) The function exhibits increasing marginal productivities in both inputs.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

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