Suppose increases in capital per worker lead to increased output per worker, but by decreasing amounts as capital increases.What does this indicate about the per-worker production function?

Question

Quizplus · Accepted Answer

The decreasing marginal returns to capital imply that the per-worker production function exhibits diminishing marginal returns, which can be modeled with a convex production function. This means that as more and more capital is added, the additional output per worker will increase at a decreasing rate.

Suppose Increases in Capital Per Worker Lead to Increased Output