Exhibit 8-1
-The shape of the per-worker production function in Exhibit 8-1 illustrates the law of increasing marginal returns to capital.

Name: Exhibit 8-1 -The shape of the per-worker production function in Exhibit 8-1 illustrates the law of increasing marginal returns to capital.
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Question

Exhibit 8-1 
-The shape of the per-worker production function in Exhibit 8-1 illustrates the law of increasing marginal returns to capital.

Quizplus · Accepted Answer

The shape of the per-worker production function in Exhibit 8-1 illustrates the law of diminishing marginal returns to capital, where at some point additional units of capital will result in smaller increases in output.

Exhibit 8-1 -The Shape of the Per-Worker Production Function in Exhibit 8-1