The law of diminishing marginal returns states that as the quantity of capital per worker increases, other things constant, output per worker _____
A) increases at a constant rate.
B) increases at a decreasing rate.
C) increases at an increasing rate.
D) decreases.
E) remains constant.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as the quantity of capital per worker increases, other things constant, output per worker increases at a decreasing rate. This means that there is a limit to how much output can be produced by adding more capital, and eventually, the additional capital will provide diminishing returns.

The Law of Diminishing Marginal Returns States That as the Quantity