if there are diminishing returns to capital, as the stock of capital rises the extra output produced from an additional unit of capital decreases.(option c)
Diminishing returns is when as more of an input is added, total output increases at first but after a certain point is reached, total output increases at a decreasing rate. This means that marginal output would start to decline.
Diminishing returns to capital is when the output of capital starts to decrease as more unit of capital is added to the production process. A reason for diminishing returns to capital is that there may not be enough labor to make use of the available capital.
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