According to the traditional view of the production function,which of the following values of the additions to output per worker would be consistent with moving from 5 to 6,and then from 6 to 7,and then from 7 to 8 units of capital per worker in that order?
A)40,40,40
B)40,35,38
C)40,34,32
D)40,43,48

Question

Quizplus · Accepted Answer

According to the traditional view of the production function, the additions to output per worker decrease as more capital is added. Therefore, the highest addition to output per worker is expected when moving from 0 to 1 units of capital per worker. As more capital is added, the additional output generated per unit of capital diminishes. Based on this reasoning, the possible values for the additions to output per worker are as follows: 
- Moving from 5 to 6 units of capital per worker: 40 (highest addition)
- Moving from 6 to 7 units of capital per worker: 34 (diminishing addition)
- Moving from 7 to 8 units of capital per worker: 32 (further diminishing addition)

Among the given answer choices, only option C has the values of 40, 34, and 32, which are consistent with the traditional view of the production function. Therefore, C is the correct choice.

According to the Traditional View of the Production Function,which of the Following