The marginal product of capital (MPK) measures ________
A) by how much output increases for each additional unit of capital
B) by how much capital increases for each additional unit of output
C) by how much capital increases for each additional unit of labor
D) by how much total factor productivity increases for each additional unit of capital
E) none of the above
A
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Suppose there are 3 possible outcomes to a vote: A, B, and C. If voters prefer A to B, C to B, and A to C, which of the following concepts are violated?
a. Transitivity b. Median Voter Theorem c. Arrow's Impossibility Theorem d. None of the above concepts are violated
If we lived in an economy where interest rates were highly volatile, would you expect the maximum asset to capital ratio that a regulator would allow to increase or decrease and why?
What will be an ideal response?