- 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 we keep K constant, increases in L will:
B. increase MPL.
C. decrease MPK.
A. decrease MPL.
B. increase MPL.
C. decrease MPK.
Correct Answer: A
This is referred to as the diminishing marginal productivity.
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