Decreasing returns to capital (N) implies that a 4% increase in N will cause
A. Y to increase by more than 4%.
B. Y to increase by exactly 4%.
C. Y to increase by less than 4%.
D. no change in Y/N.
Answer:C
Decreasing returns to capital (N) implies that a 4% increase in N will cause
A. Y to increase by more than 4%. B. Y to increase by exactly 4%. C. Y to increase by less than 4%. D. no change in Y/N.