Question: With the Cobb-Douglas production function LOADING... Upper Y equals zK Superscript 1 divided by 4 Baseline left parenthesis Upper N Superscript d right parenthesis Superscript

With the Cobb-Douglas production function LOADING... Upper Y equals zK Superscript 1 divided by 4 Baseline left parenthesis Upper N Superscript d right parenthesis Superscript 3 divided by 4Y=zK1/4Nd3/4, if both capital and labour increase by 8080%, what will happen to output? Part 2 A. Because the production function exhibits diminishing returns, output will increase by less than 8080%. B. Since the average value of the exponents in the production function is 1/2, output will only increase by 4040%. C. Output will also increase by 8080%, but only if z takes a value greater than 1.0. D. Output will increase by exactly 8080%

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