$$\begin{array} { | l | l | l | l | l | l | }
\hline & \mathrm { K } = 0 & \mathrm {~K} = 1 & \mathrm {~K} = 2 & \mathrm {~K} = 3 & \mathrm {~K} = 4 \
\hline \mathrm { L } = 0 & 0 & 0 & 0 & 0 & 0 \
\hline \mathrm { L } = 1 & 0 & 1 & 2 & 3 & 4 \
\hline \mathrm { L } = 2 & 0 & 8 & 16 & 24 & 32 \
\hline \mathrm { L } = 3 & 0 & 27 & 54 & 81 & 108 \
\hline \mathrm { L } = 4 & 0 & 64 & 128 & 192 & 256 \
\hline
\end{array}$$
-Based on the table above, holding labor constant, what do you notice about the marginal productivity of capital?
A)The marginal productivity of capital is always increasing.
B)The marginal productivity of capital is always constant.
C)The marginal productivity of capital is always decreasing.
D)The marginal productivity of capital increases, then decreases.

Question

$$\begin{array} { | l | l | l | l | l | l | } 
\hline & \mathrm { K } = 0 & \mathrm {~K} = 1 & \mathrm {~K} = 2 & \mathrm {~K} = 3 & \mathrm {~K} = 4 \
\hline \mathrm { L } = 0 & 0 & 0 & 0 & 0 & 0 \
\hline \mathrm { L } = 1 & 0 & 1 & 2 & 3 & 4 \
\hline \mathrm { L } = 2 & 0 & 8 & 16 & 24 & 32 \
\hline \mathrm { L } = 3 & 0 & 27 & 54 & 81 & 108 \
\hline \mathrm { L } = 4 & 0 & 64 & 128 & 192 & 256 \
\hline
\end{array}$$
-Based on the table above, holding labor constant, what do you notice about the marginal productivity of capital?
A)The marginal productivity of capital is always increasing.
B)The marginal productivity of capital is always constant.
C)The marginal productivity of capital is always decreasing.
D)The marginal productivity of capital increases, then decreases.

Quizplus · Accepted Answer

The marginal productivity of capital, when labor is held constant, remains constant across each row. This is observed by the consistent increase in output as capital increases, by a fixed amount for each level of labor.

-Based on the Table Above, Holding Labor Constant, What Do