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Output increases with which of the following reasons?

(A) Increase in capital.

(B) Increase in labour.

(C) Increase in cost of inputs.

(D) Increase in level of technology.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

In the production function q=f(L,K)q = f(L, K), output rises with more labour, more capital, or an improvement in technology that raises output from given inputs. A rise in the cost of inputs does not increase output; it only raises production cost. Hence (A), (B) and (D) only.

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