If increases in capital per worker lead to increased output per worker,but by decreasing amounts as capital increases,the per-worker production function
A)is linear
B)has a decreasing slope
C)has an increasing slope
D)has a negative slope
E)is horizontal

Question

Quizplus · Accepted Answer

This describes the law of diminishing marginal returns, where the marginal product of labor decreases as more capital is added to the production process. Therefore, the per-worker production function has a decreasing slope.

If Increases in Capital Per Worker Lead to Increased Output