Because of diminishing returns to capital, further increases in the quantity of capital in China would be represented as ________ the Chinese production function.
A)a downward shift of
B)an upward shift of
C)a movement up along
D)a movement down along
E)a discontinuity in

Question

Quizplus · Accepted Answer

Diminishing returns to capital means that as more capital is added, the additional output produced from an additional unit of capital decreases. This is represented as a movement up along the production function, not a shift of the function itself.

Because of Diminishing Returns to Capital, Further Increases in the Quantity