The figure below shows three different per-worker production functions: PF₁,PF₂,and PF₃.The diminishing slopes of the curves reflect _____.


A) increasing returns to scale
B) increasing marginal returns from capital
C) diminishing marginal returns from capital
D) decreasing returns to scale
E) diminishing marginal returns from labor

Diminishing Marginal Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, starts to decrease.

Per-worker Production Functions

The relationship between the amount of output produced per worker and the amount of inputs used per worker.

Slopes

In mathematics, it represents the steepness or incline of a line, indicating the rate at which it rises or falls.