The Principle That If the Amount of Labor and Other

question 36

Multiple Choice

The principle that if the amount of labor and other inputs is held constant, then the greater the amount of capital in use, the less an additional unit of capital adds to production is called the principle of:

• A)increasing average capital productivity.
• B)diminishing returns to capital.
• C)increasing returns to capital.
• D)decreasing output per unit of capital.

---

Definitions:

Additional Money

Refers to extra funds added to an individual's or organization's budget or financial resources.

Same Amount

A situation where a particular value or quantity remains unchanged across different instances or over time.

Present Value

The current assessment of a future sum of money or cash flows, when calculated with an agreed-upon rate of return.