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Marah Oglesby
on Nov 11, 2024

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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.

Diminishing Marginal Returns

The principle that as additional units of a factor of production are added to a fixed amount of other factors, the increase in output will eventually decrease.

Quantity of Capital

The total volume of physical assets, such as machinery and buildings, used in the production of goods and services.

Output Per Worker

The quantity of goods or services produced divided by the number of workers, indicating the productivity level of labor within an economy.

  • Elucidate on the concept of diminishing marginal utility.
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Javier SotomayorNov 14, 2024
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