All other things constant, which of the following will make MPK rise and MPL fall?
A. Higher K
B. Higher A.
C. Higher L
D. None of the choices is correct.
E. Lower L
According to law of variable proportion, marginal product increases as more inputs are hired.
Thus MPK rises when capital decreases and MPL falls when more labor is hired
Ans is C
All other things constant, which of the following will make MPK rise and MPL fall? A....
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