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31 March, 17:55

An increase in capital stock would: cause a movement to the left along a stationary production function. cause a movement to the right along a stationary production function. shift the production function upward. shift the production function downward.

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  1. 31 March, 17:57
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    shift the production function upward

    Explanation:

    The production function refers to the input and output relations i. e means if the number of inputs are used so the maximum output could be produced

    The production function is

    Q = f (L, K)

    where,

    Q represents the quantity

    f represents the factors

    L represents the labor

    K represents the Capital

    If there is an increase in capital stock, the production function is also increases i. e the movement is upward keeping other things constant
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