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The per-worker production function shows the relationship between the amount of output per worker and capital per worker. This curve is not linear but increases at a decreasing rate. Why?

A. If a worker has more and more capital, the additional capital will not be used as well as the previous capital, resulting in a smaller increase in output than previous units of capital.

B. Too much capital will result in inefficient production.

C. If a worker has more capital, that worker will see a reduction in productivity.

D. If a worker is provided more and more capital, the output of additional units of capital increases because of the ability to use each unit more effectively, increasing output compared to previous units of capital.

Answer :

Final answer:

The Per-worker production function curve increases at a decreasing rate due to factors such as diminishing returns of capital and reduced productivity with more capital. These effects lead to less additional output as capital per worker increases. The correct option is D.

Explanation:

The Per-worker production function shows the relationship between the amount of output per worker and capital per worker. This curve is not linear but increases at a decreasing rate because a. If a worker has more and more capital, the additional capital will not be used as well as the previous capital, resulting in a smaller increase in output than previous units of capital. b. Too much capital will result in inefficient production. c. If a worker has more capital, that worker will see a reduction in productivity. d. If a worker is provided more and more capital, the output of additional units of capital increase because of the ability to use each unit more effectively, increasing output compared to previous units of capital.

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