Holding the quantity of labor constant, output increases as the quantity of capital increases, but at a decreasing rate. This phenomenon is most accurately described as:()
A. diminishing marginal costs of capital.
B. diminishing marginal returns to labor.
C. diminishing marginal product of capital.
参考答案:C
解析:
The marginal product of capital is the change in output divided by a unit change in capital, holding labor constant. Diminishing marginal product of capital means that at a constant level of labor, output increases as capital is added, but at a decreasing rate.