If the production function is Y = 3K, then an increase in capital (K) by 1 unit would

Question

Quizplus · Accepted Answer

According to the production function, an increase in capital (K) by 1 unit would increase the output (Y) by 3 units. Therefore, option A is the correct answer. Option B is incorrect as it relates to an increase in labor (L), which is not mentioned in the production function. Option C is incorrect as an increase in capital (K) would increase the output (Y). Option D is incorrect as there is no negative relationship between capital (K) and output (Y) in this production function.

If the Production Function Is Y = 3K, Then an Increase