Which of the following statements is true?
A)The marginal product of capital is positive as long as the production function's slope is positive.
B)The marginal product of capital is positive as long as the production function's slope is zero.
C)The marginal product of capital is negative as long as the production function's slope is positive.
D)The marginal product of capital is negative as long as the production function's slope is zero.

Question

Quizplus · Accepted Answer

The marginal product of capital (MPl) is the change in output that results from a one-unit change in the amount of capital used, holding all other inputs constant. It is given by the slope of the production function. If the production function's slope is positive, then MPl is positive, indicating that an increase in capital leads to an increase in output. Therefore, statement A is true. Statement B is false because if the slope of the production function is zero, then MPl is also zero, not necessarily positive. Statements C and D are false because if the production function's slope is positive, then MPl must also be positive, and if the slope is zero, then MPl can be either positive or zero, depending on the level of capital used.

Which of the Following Statements Is True