The flattening out of the production function is likely to occur

Question

Quizplus · Accepted Answer

The flattening out of the production function occurs when additional inputs of a certain factor do not result in proportionate increases in output. This is likely to happen when there are fixed factors in the production process, such as limited land or a fixed amount of specialized labor. Therefore, choice (B) is the correct answer. The other options are incorrect because they either suggest that the flattening out only occurs in models without certain factors, or that it always occurs regardless of the factors present in the model.

The Flattening Out of the Production Function Is Likely to Occur