If an increase in capital per worker leads to increased output per worker, but by decreasing amounts as capital increases, the per-worker production function _____
A) is vertical.
B) has a decreasing slope.
C) has an increasing slope.
D) has a negative slope.
E) is horizontal.

Question

Quizplus · Accepted Answer

The decreasing amounts by which output per worker increases as capital increases indicates a diminishing marginal product of capital, resulting in a decreasing slope for the per-worker production function.

If an Increase in Capital Per Worker Leads to Increased