CFA Kaplan Schweser claim that

Cobb-Douglas function exhibits constant marginal product of capital but diminishing marginal productivity of capital.

I think this statement is not right. My view is that Cobb-Douglas production functions exhibits decreasing marginal product of capital and constant marginal productivity of capital.

I am more or less sure that Schweser made a mistake but just want to confirm.

  • $\begingroup$ Do you have the link to the quote? $\endgroup$ – FooBar Apr 3 '15 at 12:29
  • $\begingroup$ It's from the book. level 2, book 1, page 298 - kaplan schweser notes for cfa level 2 $\endgroup$ – Nitin Siwach Apr 3 '15 at 12:45
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    $\begingroup$ Why don't you enhance your question with a few mathematical calculations, after, that is, defining clearly what "marginal productivity" is (contrasted with "marginal product")? $\endgroup$ – Alecos Papadopoulos Apr 3 '15 at 16:35
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    $\begingroup$ I think you should write down the books argument and then why you think it is wrong. $\endgroup$ – Rud Faden Apr 4 '15 at 18:09
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    $\begingroup$ like Alecos, I have no idea what the difference between "marginal product" and "marginal productivity" is supposed to be. Certainly there is not a distinction in conventional usage. $\endgroup$ – nominally rigid May 3 '15 at 0:39