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Answer :
Final answer:
The slope of the production function is positive and gets flatter as capital per worker rises, reflecting the law of diminishing marginal productivity.
Explanation:
The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis is positive and gets flatter as capital per worker rises. This can be described as the diminishing marginal product of capital since each additional unit of capital adds less to the output than the previous one. Multiple sources confirm this characteristic of production functions: as labor or capital increases, while keeping all other factors constant, the additional output that results from an increase in labor or capital will eventually decrease. This trend is because the production functions are typically concave, reflecting the law of diminishing marginal productivity.
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Answer:
B.
Explanation:
Per worker production function expresses the relationship between the amount of capital per worker (horizontal axis) and the output per worker (vertical axis), other things constant (level of technology and the rules of the game).
Any point in the production function (PF), shows how much output per worker can be produced for a given amount of capital per worker.
When there are k units of capital per worker, average output per worker in the economy is y.
Upward slope of the curve occurs because an increase in capital per workers helps each worker produce more output.
