Examveda

A K-saving innovation

A. causes a greater outward shift in the nation's production possibilities curve along the axis measuring the K-intensive commodity than along the axis measuring the L-intensive commodity

B. increases the productivity of capital proportionately more than that of labour

C. is equivalently to a proportionately greater increase in the supply of capital than in the supply of labour

D. all of the above

Answer: Option C


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