Question: content area Part 1 With the Cobb-Douglas production functionLOADING... Upper Y equals zK Superscript 1 divided by 4 Baseline left parenthesis Upper N Superscript d

content area Part 1 With the Cobb-Douglas production functionLOADING... Upper Y equals zK Superscript 1 divided by 4 Baseline left parenthesis Upper N Superscript d right parenthesis Superscript 3 divided by 4, if both capital and labour increase by 110%, what will happen to output? Part 2 A. Because the production function exhibits diminishing returns, output will increase by less than 110%. B. Output will also increase by 110%, but only if z takes a value greater than 1.0. C. Output will increase by exactly 110%. D. Since the average value of the exponents in the production function is 1/2, output will only increase by 55%

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