Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Question

Assuming a Cobb-Douglas production function with constant returns to scale, then, as L rises with K and A constant, it will be the case that:

(a) Both the marginal product of labour and the marginal product of capital will fall
(b) The marginal product of labour will fall and the marginal product of capitall will rise
(c) Both the marginal product of labour and the marginal product of capital will rise
(d) The marginal product of labour will rise and the marginal product of capital will fall

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