High School

We appreciate your visit to Which of the following accurately describes what is happening along a typical aggregate production function A At some point increasing the amount of physical capital. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

Which of the following accurately describes what is happening along a typical aggregate production function?

A. At some point, increasing the amount of physical capital per worker will reduce productivity.

B. Due to diminishing returns, increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity.

C. Increases in physical capital per worker will always bring about an increase in productivity that is worth the cost of the additional physical capital.

D. Adding workers results in real GDP per worker rising at an increasing rate throughout the function.

Answer :

Because of diminishing returns, increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity accurately describes what is happening along a typical aggregate production function.

What does the term "production function" mean?

In economics, the production function is the equation that describes the relationship between the amounts of productive resources (such as labor and capital) needed and the amount of output produced.

With examples, define production function?

Q=K+L, where Q is the output's quantity, K is the capital's amount, and L is the labor's contribution to production, is one extremely basic illustration of a production function.

According to this production function, an organization can generate one unit of output for each unit of capital or labor it uses. The production function's consideration of allocative efficiency in the use of factor inputs during production and the ensuing distribution of income to those factors is one of its key goals.

Learn more about production function.

brainly.com/question/29306140

#SPJ4

Thanks for taking the time to read Which of the following accurately describes what is happening along a typical aggregate production function A At some point increasing the amount of physical capital. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada