A level of the parameter of the Cobb-Douglas production equal to one means
A) that the extra amount of output made possible by each additional unit of capital declines very slowly as the capital stock increases.
B) that the extra amount of output made possible by each additional unit of savings declines very quickly as the capital stock increases.
C) that the extra amount of output made possible by each additional unit of labor declines very quickly as the capital stock increases.
D) that the extra amount of output made possible by each additional unit of capital does not decline as the capital stock increases.

Question

A level of the parameter    of the Cobb-Douglas production equal to one means
A) that the extra amount of output made possible by each additional unit of capital declines very slowly as the capital stock increases. 
B) that the extra amount of output made possible by each additional unit of savings declines very quickly as the capital stock increases. 
C) that the extra amount of output made possible by each additional unit of labor declines very quickly as the capital stock increases. 
D) that the extra amount of output made possible by each additional unit of capital does not decline as the capital stock increases.

Quizplus · Accepted Answer

The Answer of A level of the parameter    of the Cobb-Douglas production equal to one means
A) that the extra amount of output made possible by each additional unit of capital declines very slowly as the capital stock increases. 
B) that the extra amount of output made possible by each additional unit of savings declines very quickly as the capital stock increases. 
C) that the extra amount of output made possible by each additional unit of labor declines very quickly as the capital stock increases. 
D) that the extra amount of output made possible by each additional unit of capital does not decline as the capital stock increases.

A Level of the Parameter of the Cobb-Douglas