Keeping total factor productivity constant,as the capital-labour ratio increases,labour productivity

Question

Quizplus · Accepted Answer

As the capital-labor ratio increases, the marginal productivity of labor decreases. This is because an increase in capital per worker eventually leads to diminishing returns to capital, which reduces the marginal productivity of labor. Therefore, as the ratio increases, labor productivity increases at a decreasing rate.

Keeping Total Factor Productivity Constant,as the Capital-Labour Ratio Increases,labour Productivity