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One Reason to Believe That the Marginal Product of Capital

Question 11

Multiple Choice

One reason to believe that the marginal product of capital may be constant is that


A) capital and labor are substitutes in production
B) physical capital and human capital may be complementary inputs
C) firms treat unsold output as inventory investments
D) beyond the optimal level, the extra output produced by another machine is always zero
E) technology rarely changes

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