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.
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.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 7E
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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. |
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