"Capital dilution" refers to ________.
A)the flow of investment in the "bathtub model"
B)the depreciation of capital associated with an increase in the percentage of younger workers
C)the decline in the marginal product of capital that results from reliance on new,inexperienced workers
D)the decrease in capital per worker that is a direct consequence of an increase in the number of workers

Question

Quizplus · Accepted Answer

Capital dilution refers to the decrease in capital per worker that occurs when the number of workers increases without a corresponding increase in capital. This can lead to a decline in productivity and economic growth.

"Capital Dilution" Refers to ________