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Question
The firm uses the following function to calculate the production out (PO) : PO = 5.3C2 L15, where C = capital invested and L = labour employed. If the capital invested (C) increases by 20 percent, the change in PO will be :
Options:
A .  20% decrease
B .  32% increase
C .  44% increase
D .  56% increase
Answer: Option C

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