Assuming that the supply of labour is inelastic, which of the following factors will prevent diminishing returns in an economy?

Question

Quizplus · Accepted Answer

An increase in the employment of capital can prevent diminishing returns in an economy by enhancing productivity per worker, even when the supply of labor is inelastic. This is because additional capital (such as machinery or technology) can make labor more efficient, leading to increased output without the need for more workers.

Assuming That the Supply of Labour Is Inelastic, Which of the Following