Given the production function q = f(L, K), we obseve that MPL > APL. What...

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Given the production function q = f(L, K), we obseve that MPL > APL. What...

Given the production function q = f(L, K), we obseve that MPL > APL. What also must be true? A. %Upper DeltaΔq < %Upper DeltaΔL B. %Upper DeltaΔq = %Upper DeltaΔL C. %Upper DeltaΔq > %Upper DeltaΔL

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Answer 1

Answer #1

The correct answer is option C. With MPL > APL, Q/L > Q/L.

Q/Q > L/L

Percentage change in Q will be greater than the percentage change in L.

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Answer 2

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