With a fixed labor force, diminishing returns means that as capital deepening continues:

Question

Quizplus · Accepted Answer

Diminishing returns means that as we increase the amount of capital, the marginal product of capital (the additional output produced per unit of capital) decreases. This is because there comes a point where additional units of capital become less productive due to limited resources or inefficiencies. This is why choice D, where the marginal product of capital becomes smaller, is the best answer.

With a Fixed Labor Force, Diminishing Returns Means That as Capital