In a Cobb-Douglas production function, the marginal product of capital will increase if:
A)the quantity of labour increases.
B)the quantity of capital increases.
C)labour's share of output increases.
D)average capital productivity decreases.

Question

Quizplus · Accepted Answer

In a Cobb-Douglas production function, the marginal product of capital increases if the quantity of labor increases, as it enhances the productivity of capital due to the complementary relationship between labor and capital.

In a Cobb-Douglas Production Function, the Marginal Product of Capital