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Which of the following statements is true about the production function Y =F(L,K)? An increase in...

Which of the following statements is true about the production function Y =F(L,K)?

An increase in labor causes output to increase but an increase in capital will not cause output to increase unless it is accompanied by an increase in labor.
An increase in capital causes an increase in capital.
Output increases only when both labor and capital increase.
It is possible for output to increase if capital increases, even if there is no change in the labor input.
An increase in capital causes output to increase but an increase in labor will not cause output to increase unless it is accompanied by an increase in capital.
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Answer #1

The function says that the output depends on labor and capital. A change in any of the two factors will lead to change in output. A change in only one factor and the other remaining fixed may lead to change in output. Thus the correct option is that even if there is no change in labor, the capital increase may result in an increase in output.

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