The traditional view of the production process is that capital is subject to

a. constant returns.

b. increasing returns.

c. diminishing returns.

d. diminishing returns for low levels of capital, and increasing returns for high levels of capital

Question

Alani

Business

12 February, 01:30

The traditional view of the production process is that capital is subject to

a. constant returns.

b. increasing returns.

c. diminishing returns.

d. diminishing returns for low levels of capital, and increasing returns for high levels of capital

+2

Answers (1)

Know the Answer?

Caitlin Bowers · Answer 1

The correct answer is letter "C": diminishing returns.

Explanation:

The traditional view of the production process establishes that the extra production generated by an additional unit of capital drops as the inventory of capital increases. Other production determinants, including human capital, natural resources, and technology keep their same levels.

The traditional view of the production process is that capital is subject toa. constant returns.b. increasing returns.c. diminishing returns.d. diminishing returns for low levels of capital, and increasing returns for high levels of capital

The traditional view of the production process is that capital is subject to

a. constant returns.

b. increasing returns.

c. diminishing returns.

d. diminishing returns for low levels of capital, and increasing returns for high levels of capital