Two Economies Are Identical Except That the Level of Capital

question 12

Multiple Choice

Two economies are identical except that the level of capital per worker is higher in Highland than in Lowland. The production functions in both economies exhibit diminishing marginal product of capital. An extra unit of capital per worker increases output per worker:

• A) more in Highland.
• B) more in Lowland.
• C) by the same amount in Highland and Lowland.
• D) in Highland, but not in Lowland.

---

Definitions:

Supply Chain Excellence

Refers to the strategic achievement of optimizing supply chain processes to ensure efficiency, cost-effectiveness, and customer satisfaction.

Modes

Different methods or means of transportation, communication, or operation.

Specialized Services

Custom or niche services offered to address specific needs of a particular customer segment or market.

3PL Study

An examination or research focused on third-party logistics providers, covering aspects like efficiency, services, and impact on supply chains.