Consider the black production function above. If production is at one of the blue points on the black curve and the quantity of labor input changes The new point of production would also be on the black line, for example, at the other blue point. The new point of production would be on the purple line. If production is at one of the blue points on the black curve and the quantity of capital input increases The new point of production would be on the purple line. The new point of production would also be on the black line, for example, at the other blue point. The slope of the curves decreases as labor input increases. What does this represent? O A. Diminishing Returns, i.e. where the marginal product of labor increases as labor increases B. Increasing Returns, i.e. where the marginal product of labor decreases as labor increases O C. Increasing Returns, i.e. where the marginal product of labor increases as labor increases OD. Diminishing Returns, i.e. where the marginal product of labor decreases as labor increases 10- 9- 8- 7- 5- 4. 3- 2- 1- Cloth Production Function Movement 0 2 6 8 10 Labor