The decreasing slope of a production function reflects

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The decreasing slope of a production function indicates diminishing returns. This means that additional inputs of a particular factor of production (e.g. labor) will result in smaller and smaller increases in output, eventually reaching a point where adding more of that factor of production will actually reduce output. This is a common phenomenon in a variety of production processes and is a key reason why firms and industries may face limits to growth and profitability over time.

The Decreasing Slope of a Production Function Reflects