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Manord Seedee
on Nov 16, 2024

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Refer to Figure 25-1. The curve becomes flatter as the amount of capital per worker increases because of

A) increasing returns to capital.
B) increasing returns to labor.
C) diminishing returns to capital.
D) diminishing returns to labor.

Diminishing Returns

The decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, keeping all other factors constant.

  • Comprehend the categorization and influence of various forms of capital within the economic system.
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Prabhjot WaraichNov 19, 2024
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