Narrbegin Exhibit 12.2
\[\begin{array} { | c | c | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Capital stock } \
\text { per person }
\end{array} & \begin{array} { c }
\text { Output per } \
\text { person }
\end{array} & \begin{array} { c }
\text { Capital stock } \
\text { depreciation } \
\text { (at rate of 10 } \
\text { per cent) }
\end{array} & \begin{array} { c }
\text { Gross in- } \
\text { vestment } \
\text { per person }
\end{array} & \begin{array} { c }
\text { Required } \
\text { saving } \
\text { per per- } \
\text { son }
\end{array} & \begin{array} { c }
\text { Required } \
\text { saving } \
\text { rate }
\end{array} & \begin{array} { c }
\text { Consump- } \
\text { tion per } \
\text { person }
\end{array} \
\hline 100 \quad ( \langle 20 \% ) & 40 & 10 & 10 & 10 & 25 \% & 30 \
\hline 120 \quad ( \langle 20 \% ) & 46 (

Question

Narrbegin Exhibit 12.2
 \[\begin{array} { | c | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Capital stock } \
\text { per person }
\end{array} & \begin{array} { c } 
\text { Output per } \
\text { person }
\end{array} & \begin{array} { c } 
\text { Capital stock } \
\text { depreciation } \
\text { (at rate of 10 } \
\text { per cent) }
\end{array} & \begin{array} { c } 
\text { Gross in- } \
\text { vestment } \
\text { per person }
\end{array} & \begin{array} { c } 
\text { Required } \
\text { saving } \
\text { per per- } \
\text { son }
\end{array} & \begin{array} { c } 
\text { Required } \
\text { saving } \
\text { rate }
\end{array} & \begin{array} { c } 
\text { Consump- } \
\text { tion per } \
\text { person }
\end{array} \
\hline 100 \quad ( \langle 20 \% ) & 40 & 10 & 10 & 10 & 25 \% & 30 \
\hline 120 \quad ( \langle 20 \% ) & 46 ( < 15 \% ) & 12 & 12 & 12 & 26 \% &-?- \ 
\hline 144 \quad ( \langle 20 \% ) & \begin{array} { c } 
50.6 ( < \
10 \% )
\end{array} & 14 & 14 & 144 & 28.5 \% & 36.2 \
\hline 172.8 ( \langle 20 \% ) & 53.1 ( \langle 5 \% ) & 17.3 & 17.3 & 17.3 &  { } _ { - } { ?} _ { - } \% & 35.8 \
\hline
\end{array}\]
-According to Exhibit 12.2, output per worker is increasing at a decreasing rate. This is due to:

Quizplus · Accepted Answer

Diminishing marginal productivity means that as more resources are added, the increase in output will become smaller and smaller. This leads to an increase in output per worker at a decreasing rate. Therefore, option C is the correct choice. Options A and D are incorrect as they refer to the relationship between output and scale of production, while option B refers to a situation where input and output have a proportional relationship, which is not the case in the given scenario.

Narrbegin Exhibit 12 -According to Exhibit 12