The production function is concave in capital because
A) the contribution to production of each additional unit of capital decreases.
B) the marginal product of capital is increasing.
C) the marginal product of labor is decreasing.
D) the cost of loans increases with their quantity.
Question 2
Real gross national product is
a. the same as national income if there were no depreciation and taxes.
b. always less than national income.
c. always greater than real gross domestic product.
d. always less than nominal gross national product.
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