When capital increases by $\Delta$K units, output increases by:
A) $\Delta$L units.
B) MPL × $\Delta$L units.
C) $\Delta$K units.
D) MPK × $\Delta$K units.

Name: When capital increases by $\Delta$K units, output increases by: A) $\Delta$L units. B) MPL × $\Delta$L units. C) $\Delta$K units. D) MPK × $\Delta$K units.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

When capital increases, output increases by the marginal product of capital (MPK) times the increase in capital, which is represented by "MPK × ΔK" in option D.

When Capital Increases By Δ\DeltaΔ K Units, Output Increases By: A) Δ\DeltaΔ

When Capital Increases By $\Delta$ K Units, Output Increases By:
A) $\Delta$