Asked by

Demoines Whitney
on Nov 11, 2024

verifed

Verified

The slope of the per-worker production function diminishes as the amount of capital per-worker increases.This is a reflection of the law of _____.

A) increasing marginal returns
B) diminishing marginal returns
C) constant marginal returns
D) first diminishing then increasing marginal returns
E) demand

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, cannot continue to increase if other inputs remain constant.

Per-worker Production Function

A mathematical representation of the relationship between output per worker and the amount of capital per worker, along with technology.

Capital

Financial assets or the financial value of assets, such as cash and securities, used to fund a business or generate wealth.

  • Clarify the theory behind diminishing marginal returns.
verifed

Verified Answer

JO
Jalyn OwensNov 16, 2024
Final Answer:
Get Full Answer