Question 24 1 point Diminishing returns to capital means tha

Question 24 (1 point) Diminishing returns to capital means that as you add more capital: 1) output falls. O 2) the additional contribution to output eventually declines labor usage falls. 4) output rises

Solution

Diminishing returnsto capital states that when you add more capital, the marginal productivity decreases or in other words the additional contribution to output eventually decreases.

Therefore 2) the additional contribution to output eventually decreases.