The principle that if the amount of labor and other inputs is held constant, then the greater the amount of capital in use, the less an additional unit of capital adds to production is called the principle of:
A)increasing average capital productivity.
B)diminishing returns to capital.
C)increasing returns to capital.
D)decreasing output per unit of capital.

Question

Quizplus · Accepted Answer

This is the definition of the "principle of diminishing returns" as applied to addition of capital stock.

The Principle That If the Amount of Labor and Other