Exhibit 8.2 -Refer to Exhibit 8.2, Which Shows Three Different Per-Worker Production

question 33

Multiple Choice

Exhibit 8.2

-Refer to Exhibit 8.2, which 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.

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