The decreasing slope of the aggregate production function reflects

Question

Quizplus · Accepted Answer

The decreasing slope of the aggregate production function reflects diminishing returns, meaning that as more units of a variable input (such as labor) are added to a fixed input (such as capital), the marginal product of the variable input eventually decreases, resulting in a decreasing slope. This is a common phenomenon in the short run and helps explain why there is a limit to how much output can be produced with a given set of inputs.

The Decreasing Slope of the Aggregate Production Function Reflects