Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8 . Other things the same, diminishing returns implies that country A is
a. richer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units.
b. richer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.
c. poorer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units.
d. poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.
d
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A monopolist has the market demand and marginal cost schedules given in the above table. If the monopoly can perfectly price discriminate, what is the profit-maximizing level of output and price?
What will be an ideal response?
Refer to the figure above. With the tariff, the quantity of imports falls to
A) 10,000 units. B) 12,000 units. C) 14,000 units. D) 22,000 units.