The slope of the per-worker production function diminishes as the amount of capital per worker increases.What is this a reflection of?
A) the law of increasing marginal returns
B) the law of diminishing marginal returns
C) the law of constant marginal returns
D) the law of demand

Question

The slope of the per-worker production function diminishes as the amount of capital per worker increases.What is this a reflection of?  
A) the law of increasing marginal returns 
B) the law of diminishing marginal returns 
C) the law of constant marginal returns 
D) the law of demand

Quizplus · Accepted Answer

The slope of the per-worker production function diminishing as the amount of capital per worker increases is a reflection of the law of diminishing marginal returns. As more capital is added to the production process, the additional output produced by each additional unit of capital will eventually decrease, resulting in a diminishing marginal return on the capital invested. This is reflected in the slope of the production function becoming flatter as more capital is added.

The Slope of the Per-Worker Production Function Diminishes as the Amount