Diminishing returns to physical capital implies that, when the human capital per worker and the state of technology remain fixed, each successive increase in physical capital leads to _____ productivity.

Question

Quizplus · Accepted Answer

Diminishing returns to physical capital means that as more units of physical capital are added, the productivity of each additional unit will start to decrease. Therefore, each successive increase in physical capital will lead to a smaller increase in productivity.

Diminishing Returns to Physical Capital Implies That, When the Human