Question

In a Cobb–Douglas production function the marginal product of labor will increase if:
a. average labor productivity decreases.
b. the quantity of capital increases.
c. capital's share of output increases.
d. the quantity of labor increases.

Answer 1

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

The rise in the labor workforce would raise the productive output of capital in a specific Cobb – Douglas output method, and it will raise the actual rental price of resources.

The gross amount of capital would also rise in the output of Cobb-Douglas if the volume of labor grows.

Under this function, human capital will help in the production of the product, human capital and marginal production are directly proportionate to each other.