Which of the following explains the shape of the aggregate production function?

Question

Quizplus · Accepted Answer

The shape of the aggregate production function is primarily determined by the law of diminishing returns, which states that as the amount of one factor of production (such as labor or capital) increases while holding all other factors constant, the marginal product of that factor will eventually decrease. This results in a curve that starts out steeply sloping upward but eventually flattens out as additional inputs become less productive.

Which of the Following Explains the Shape of the Aggregate