The Graph Below Illustrates the Concept of a Production Function

question 100

Multiple Choice

The graph below illustrates the concept of a production function and diminishing returns, where an increase in k results in a:

• A) large increase in real GDP per worker in area 1.
• B) small increase in real GDP per worker in area 1.
• C) large increase in real GDP per worker in area 2.
• D) small increase in real GDP per worker in both area 1 and area 2.

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