Which of the following best describes the aggregate production function if output is measured on the vertical axis and the number of workers employed is measured on the horizontal axis? The curve is
A) downward sloping and becomes flatter as the number of workers employed increases
B) downward sloping and becomes steeper as the number of workers employed increases
C) downward sloping with the same slope throughout
D) upward sloping and becomes steeper as the number of workers employed increases
E) upward sloping and becomes flatter as the number of workers employed increases

Question

Quizplus · Accepted Answer

The aggregate production function is typically upward sloping and becomes flatter as more workers are employed due to diminishing marginal returns to labor.

Which of the Following Best Describes the Aggregate Production Function