The concept of diminishing returns to capital would suggest that an additional unit of capital would be most productive in which of the following countries?

Question

Quizplus · Accepted Answer

The concept of diminishing returns to capital implies that as more capital is added, the additional output from each new unit of capital decreases. Therefore, a country with less capital per worker, like Honduras, would see a greater increase in productivity from an additional unit of capital compared to countries with more capital per worker.

The Concept of Diminishing Returns to Capital Would Suggest That