The bowed shape of the per-worker production function is caused by
A)wealth effects that reduce labor supply.
B)diminishing marginal productivity of capital.
C)increasing marginal productivity of labor.
D)increasing marginal productivity of capital.

Question

Quizplus · Accepted Answer

The bowed shape of the per-worker production function is caused by diminishing marginal productivity of capital. As the number of capital increases, the marginal productivity decreases, leading to a diminishing return. This results in a bowed shape of the production function where initially, the marginal productivity increases, but it starts to decrease after a point.

The Bowed Shape of the Per-Worker Production Function Is Caused