If Increases in Capital Per Worker Lead to Increased Output

question 142

Multiple Choice

If increases in capital per worker lead to increased output per worker,but by decreasing amounts as capital increases,the per-worker production function _____.

• A)is vertical
• B)has a decreasing slope
• C)has an increasing slope
• D)has a negative slope
• E)is horizontal

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Definitions:

Economic Profits

The surplus remaining after deducting both explicit and implicit costs from total revenues, often indicating the profitability beyond normal returns.

Competitive Market

A market structure characterized by numerous buyers and sellers, such that no single market participant has the power to significantly influence prices.

Market Price

The current price at which a good or service can be bought or sold.

Total Revenue

The total income generated by the sale of goods or services by a company.