The law of diminishing marginal returns states that as the quantity of capital per worker increases,other things constant,output per worker eventually:
A)increases at a constant rate.
B)increases at a decreasing rate.
C)increases at an increasing rate.
D)decreases.
E)remains constant.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more units of a variable input (such as capital) are added to a fixed amount of other inputs (such as labor), the additional output produced will eventually decrease. This means that output per worker will increase at a decreasing rate as more capital is added, eventually leading to a point where adding more capital will not increase output at all.

The Law of Diminishing Marginal Returns States That as the Quantity