Consider Two Countries, Labeled 1 and 2 A2:
A) Country 2 Will Not Produce Anything, Ceteris Paribus
Consider two countries, labeled 1 and 2. Each has the production function , = 1, 2. If the only difference between the two countries is that A1 A2:
A) Country 2 will not produce anything, ceteris paribus.
B) Country 2 will produce more than Country 1, ceteris paribus.
C) Country 1 will produce more than Country 2, ceteris paribus.
D) each will produce the same amount, ceteris paribus.
E) Not enough information is given.
Correct Answer:
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