Figure 22-4
-Refer to Figure 22-4. The movement from A to B to C illustrates
A) an improvement in technology.
B) a decline in capital per worker.
C) diminishing returns to capital.
D) diminishing returns to labor.

Question

Figure 22-4 
-Refer to Figure 22-4. The movement from A to B to C illustrates
A) an improvement in technology. 
B) a decline in capital per worker. 
C) diminishing returns to capital. 
D) diminishing returns to labor.

Quizplus · Accepted Answer

The movement from A to B to C illustrates diminishing returns to capital, as each additional unit of capital results in a smaller increase in output.

Figure 22-4 -Refer to Figure 22-4. the Movement from a to B