Figure 12-1. On the horizontal axis, K/L represents capital (K) per worker (L). On the vertical axis, Y/L represents output (Y) per worker (L).
-Refer to Figure 12-1. The curve becomes flatter as the amount of capital per worker increases because of
A)increasing returns to capital.
B)increasing returns to labor.
C)diminishing returns to capital.
D)diminishing returns to labor.

Question

Figure 12-1. On the horizontal axis, K/L represents capital (K) per worker (L). On the vertical axis, Y/L represents output (Y) per worker (L). 
-Refer to Figure 12-1. The curve becomes flatter as the amount of capital per worker increases because of
A)increasing returns to capital. 
B)increasing returns to labor. 
C)diminishing returns to capital. 
D)diminishing returns to labor.

Quizplus · Accepted Answer

The flattening of the curve as the amount of capital per worker increases is due to diminishing returns to capital, where the additional output produced by each additional unit of capital decreases as the amount of capital per worker increases.