Figure 25-1
-Refer to Figure 25-1. The curve becomes flatter as the amount of capital per worker increases because of
A)increasing returns to capital.
B)increasing returns to labor.
C)diminishing returns to capital.
D)diminishing returns to labor.

Question

Figure 25-1 
-Refer to Figure 25-1. The curve becomes flatter as the amount of capital per worker increases because of
A)increasing returns to capital. 
B)increasing returns to labor. 
C)diminishing returns to capital. 
D)diminishing returns to labor.

Quizplus · Accepted Answer

The curve flattens due to diminishing returns to capital, meaning that as more capital per worker is added, the additional output produced by the extra capital decreases.

Figure 25-1 -Refer to Figure 25-1. the Curve Becomes Flatter as the Flatter