The production function y = f(k)means:
A) labour is not a factor of production.
B) output per worker is a function of labour productivity.
C) output per worker is a function of capital per worker.
D) the production function exhibits increasing returns to scale.
When f(k)is drawn on a graph with increases in k noted along the horizontal axis,the:
A) graph is a straight line.
B) slope of the line eventually gets flatter and flatter.
C) slope of the line eventually becomes negative.
D) slope of the line eventually becomes steeper and steeper.
When f(k)is drawn on a graph with increases in k noted along the horizontal axis,the slope of the line denotes:
A) output per worker.
B) output per unit of capital.
C) the marginal product of labour.
D) the marginal product of capital.
Two economies are identical except that the level of capital per worker is higher in Highland than in Lowland.The production functions in both economies exhibit diminishing marginal product of capital.An extra unit of capital per worker increases output per worker:
A) more in Highland.
B) more in Lowland.
C) by the same amount in Highland and Lowland.
D) in Highland,but not in Lowland.