Diminishing Returns to Physical Capital Means That, When the Amount

question 236

Multiple Choice

Diminishing returns to physical capital means that, when the amount of human capital per worker and the state of technology are held fixed, each increase in the amount of physical capital per worker leads to:

• A) a smaller increase in the marginal product of labor.
• B) a decrease in the total amount of output.
• C) negative marginal product.
• D) a constant amount of total output.

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