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bogdanovich [222]
3 years ago
15

Diminishing returns to physical capital means that when the amount of human capital per worker and the state of technology are h

eld fixed, each increase in the amount of physical capital per worker leads to:
a. a smaller increase in the marginal product of labor.
b. a decrease in the total amount of output.
c. negative marginal product.
d. a constant amount of total output.
Business
1 answer:
-BARSIC- [3]3 years ago
6 0

Answer:

a. a smaller increase in the marginal product of labor. 

Explanation:

The law of diminishing returns to physical capital states that as more and more input are added to fixed factors of production, output increases at a decreasing rate.

For there to be output growth, physical capital should be increased less than human capital and technological progress.

I hope my answer helps you

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