The fact that the production function relating output to capital becomes flatter as we move from left to right means that
A)the marginal product of labor is positive.
B)the marginal product of capital is positive.
C)there is diminishing marginal productivity of labor.
D)there is diminishing marginal productivity of capital.

Question

Quizplus · Accepted Answer

As we move from left to right, the slope of the production function decreases, indicating diminishing marginal productivity of capital. This means that each additional unit of capital used in production adds less and less to the total output.

The Fact That the Production Function Relating Output to Capital