Industria and Agraria are two neighboring countries.Suppose Good X is the only good produced in both countries and its production is a function of physical capital and the efficiency units of labor.It is found that a one-unit increase in capital leads to a higher increase in the production of Good X in Agraria than in Industria.Explain this outcome if both countries have the same number of efficiency units of labor.

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The Answer of Industria and Agraria are two neighboring countries.Suppose Good X is the only good produced in both countries and its production is a function of physical capital and the efficiency units of labor.It is found that a one-unit increase in capital leads to a higher increase in the production of Good X in Agraria than in Industria.Explain this outcome if both countries have the same number of efficiency units of labor.

Industria and Agraria Are Two Neighboring Countries