The production function is given by: Y=AK^{0.4 } + AN^{0.6}, A0 Which of the following statement is correct ?

Question

The production function is given by:    Y=AK^{0.4 } + AN^{0.6},     A>0  Which of the following statement is  correct ?

Answer

The marginal product of capital increases when the quantity of labour increases

Answer

Marginal products are positive and diminishing

Answer

The production function exhibits constant returns to scale

Answer

Capital-labour complementarity is satisfied

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