Country A and country B both increase their capital stock by one unit. Output in country A increases by 15 while output in country B increases by 12. 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 15 units.
B) richer than Country B. If Country A adds another unit of capital, output will increase by less than 15 units.
C) poorer than Country B. If Country A adds another unit of capital, output will increase by more than 15 units.
D) poorer than Country B. If Country A adds another unit of capital, output will increase by less than 15 units.
Correct Answer:
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