If the per-worker production function is y = Ak, where A is a positive constant, then the marginal product of capital:
A) increases as k increases.
B) is constant as k increases.
C) decreases as k increases.
D) cannot be measured in this case.

Question

Quizplus · Accepted Answer

The marginal product of capital is the derivative of the production function with respect to capital, k. In this case, the derivative of y = Ak with respect to k is A, which is a constant. This means the marginal product of capital does not change as k increases, making it constant.

If the Per-Worker Production Function Is Y = Ak, Where