- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 9. Economic Growth
- Subject 3. Production Function and Growth Accounting
CFA Practice Question
In the Cobb-Douglas production function, if K/L increases, then:
B. MPL will increase and MPK will decrease.
C. Both MPK and MPL will decrease.
A. MPK will increase and MPL will decrease.
B. MPL will increase and MPK will decrease.
C. Both MPK and MPL will decrease.
Correct Answer: B
Again, diminishing marginal productivity.
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