What is the effect of diminishing returns to labor on the slope of the aggregate production function (where output is measured on the vertical axis and employment is measured on the horizontal axis)? a.It implies that the slope of the curve decreases as the number of workers employed increases. b.It keeps the slope the same throughout. c.It implies that the slope of the curve becomes negative as the number of workers employed increases. d.It has nothing to do with the slope of the aggregate production function. e.It implies that the slope of the curve increases as the number of workers employed increases.

Option (A) is correct answer It implies that the slope of the curve decreases as the number of…

Answered: What is the effect of diminishing…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

What is the effect of diminishing returns to labor on the slope of the aggregate production function (where output is measured on the vertical axis and employment is measured on the horizontal axis)?

	a.	It implies that the slope of the curve decreases as the number of workers employed increases.
	b.	It keeps the slope the same throughout.
	c.	It implies that the slope of the curve becomes negative as the number of workers employed increases.
	d.	It has nothing to do with the slope of the aggregate production function.
	e.	It implies that the slope of the curve increases as the number of workers employed increases.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions