Exhibit 12-2

-According to Exhibit 12-2,output per worker is increasing at a decreasing rate.This is due to:

Question

Exhibit 12-2
 
-According to Exhibit 12-2,output per worker is increasing at a decreasing rate.This is due to:

Quizplus · Accepted Answer

Diminishing marginal productivity occurs when adding one more unit of input leads to a smaller increase in output. This results in output per worker increasing at a decreasing rate. Options A, D, and E are not relevant to the graph and option B would show a constant slope if returns to scale were decreasing.

Exhibit 12-2 -According to Exhibit 12-2,output Per Worker Is Increasing at a Is