According to the traditional view of the production process, how does output per worker change when capital per worker increases?
A) It increases. This increase is larger at larger values of capital per worker.
B) It increases. This increase is smaller at larger values of capital per worker.
C) It increases. This increase is the same at all values of capital per worker.
D) It decreases. This decrease is larger at larger values of capital per worker.

Question

Quizplus · Accepted Answer

According to the traditional view of the production process, as capital per worker increases, output per worker also increases, but at a diminishing rate. This means the increase in output per worker is smaller at larger values of capital per worker, reflecting diminishing marginal returns to capital.

According to the Traditional View of the Production Process, How