---### Understanding Production Functions**Question 9:****1 point****(CV) & (KA)** If we draw the production function with output on the vertical axis and physical capital on the horizontal axis, the slope of the production function will be decreasing because of:- ☐ diminishing marginal product of capital- ☐ it just looks better that way- ☐ diminishing potential output- ☐ diminishing technological change**Explanation:**When discussing production functions in economics, the diminishing marginal product of capital is a vital concept. This principle states that as more physical capital is added, holding all other inputs constant, the additional output produced from each new unit of capital will eventually decline. This results in a decreasing slope in a graph where output is on the vertical axis and physical capital is on the horizontal axis. Understanding this can help interpret various economic scenarios and their implications on productivity.---By presenting the information this way, students can clearly understand the context and the correct answer without any confusion.

A production function that plots the output on the y axis and the capital on the x axis , slope of…

9 1 point (CV) & (KA) If we draw the production function with output on the vertical axis and physical capital on the horizontal axis, the slope of the production function will be decreasing because of diminishing marginal product of capital -DO 000 0 it just looks better that way diminishing potential output diminishing technological change

9 1 point (CV) & (KA) If we draw the production function with output on the vertical axis and physical capital on the horizontal axis, the slope of the production function will be decreasing because of diminishing marginal product of capital -DO 000 0 it just looks better that way diminishing potential output diminishing technological change

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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