Question

The per-worker production function flattens out due to ________. A) the negative relationship between price and quantity demanded B) the positive relationship between price and quantity demanded C) the diminishing marginal product of capital D) an increase in the general level of prices

Answer 1

Answer: the correct answer is C) the diminishing marginal product of capital.

Explanation:

Inputs include labor and raw materials. The law of diminishing marginal returns states that when an advantage is gained in a factor of production, the marginal productivity will typically diminish as production increases. This means that the cost advantage usually diminishes for each additional unit of input produced.