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In the Cobb-Douglas Production Function Y = AK³/⁴ᴸ¹/⁴

Question 11

Multiple Choice

In the Cobb-Douglas production function Y = AK³/⁴ᴸ¹/⁴,


A) capital is a more expensive input than labour.
B) capital is more plentiful than labour.
C) diminishing returns to capital are three times greater than are diminishing returns to labour.
D) capital has a larger share in national income than does labour.

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