The Figure Below Shows Three Different Per-Worker Production Functions: PF₁

question 35

Multiple Choice

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

---

Definitions:

Laissez-faire Leader

a leadership style characterized by minimal supervision, where subordinates are given the freedom to make decisions and solve problems on their own.

Management Traits

Characteristics or attributes shown by effective managers, including leadership, vision, communication, and decision-making skills.

Low Concern

A state or attitude where an individual or entity shows little interest or care about a particular issue or outcome.

Autocratic Leader

This is a leadership style characterized by individual control over all decisions and little input from group members.