Question

Diminishing returns to physical capital means that when the amount of human capital per worker and the state of technology are held fixed, each increase in the amount of physical capital per worker leads to:

a. a smaller increase in the marginal product of labor.
b. a decrease in the total amount of output.
c. negative marginal product.
d. a constant amount of total output.

Answer 1

a. a smaller increase in the marginal product of labor.

Step-by-step explanation:

The law of diminishing returns to physical capital states that as more and more input are added to fixed factors of production, output increases at a decreasing rate.

For there to be output growth, physical capital should be increased less than human capital and technological progress.

I hope my answer helps you