The following figure shows the total output that an economy can produce using varying amounts of capital.

-Refer to the figure above.The increase in output due to a one-unit increase in capital is the smallest at point ________.
A) A
B) B
C) C
D) D

Question

The following figure shows the total output that an economy can produce using varying amounts of capital.
 
-Refer to the figure above.The increase in output due to a one-unit increase in capital is the smallest at point ________.
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

The increase in output due to a one-unit increase in capital is smallest at point D because it is likely on the flatter part of the production function, indicating diminishing returns to capital.

The Following Figure Shows the Total Output That an Economy