All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?
a. Output will rise by more than it did when the previous unit was added.
b. Output will rise but by less than it did when the previous unit was added.
c. Output will fall by more than it did when the previous unit was added.
d. Output will fall but by less then it did when the previous unit was added.
b
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If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's consumers end up
A) paying a higher price for the good than they otherwise would. B) paying a lower price for the good than they otherwise would. C) consuming more of the good than they otherwise would. D) having a higher standard of living than they otherwise would.
When the price of a good increases, what would we expect to see in the markets for its complements?
A. Lower prices and increased sales B. Lower prices and decreased sales C. Higher prices and increased sales D. Higher prices and decreased sales