Explain in your own words how the aggregate production function relates to the concept of diminishing marginal returns and refer to quantity values indicated in this figure.

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After reviewing the materials in Objective 3, and specifically the Learning Activity titled “Aggregate Production Function,” please refer back to Figure 3.11. Explain in your own words how the aggregate production function relates to the concept of diminishing marginal returns and refer to quantity values indicated in this figure. Why do you feel that technology and factors of production need to be fixed when assessing the graphical representation of the aggregate production function? This figure also displays the concept of diminishing marginal returns. Select one good or service and relate this good or service to the concept of diminishing marginal returns.






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