In a graph of the production function relating output to capital,it is NOT true that
A)labour supply increases as capital increases.
B)the marginal product of capital can be measured as the slope of the production function.
C)the marginal product of capital falls as the capital stock increases.
D)the shape of the production function reflects diminishing marginal productivity.

Question

Quizplus · Accepted Answer

The production function only shows the relationship between output and capital, it does not necessarily reflect the impact of labour supply on output.

In a Graph of the Production Function Relating Output to Capital,it