Macroeconomics 11th Edition by Michael Parkin

Exercise 21

For three years, there was no technological change in Longland but capital per hour of labor increased from $10 to $20 to $30 and real GDP per hour of labor increased from $3.80 to $5.70 to $7.13. Then, in the fourth year, capital per hour of labor remained constant but real GDP per hour of labor increased to $10. Does Longland experience diminishing returnsExplain why or why not.