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Diminishing Returns to Physical Capital Suggests That

Question 295

Multiple Choice

Diminishing returns to physical capital suggests that:


A) at some point, increasing the amount of physical capital per worker is not worth the cost of the additional amount of capital.
B) after some point, increasing the amounts of physical capital per worker will lead to decreases in productivity.
C) increasing the amount of physical capital per worker is always worth the cost of the capital.
D) there are increasing returns to technology and human capital.

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