GDP

Using the points on the following diagram (Figure 1), identify which combinations of these points illustrate diminishing returns to capital. Give a brief explanation to support your answer. (6 marks) Real GDP per hour worked, Y/L Production D 17 000 functions C 16 400 Production function2 16 000 B Production A function, 15 000 E $50 000 $60 000 $70 000 Capital per hour worked, K/L