CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

In the Cobb-Douglas production function, F(K,L) = KαL1-α, a value of α close to zero means:
A. MPK (marginal productivity of capital) is almost maximized.
B. MPL (marginal productivity of labor) is almost maximized.
C. Both MPL and MPK are almost maximized.
Explanation: In this case the impact of additional capital is very small.

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