The information shown in the graphs represents hypothetical production functions of two countries. Suppose in a given year East Ablished moves from point A to point B on its production function, while Uneastablished moves from point C to point D on its production function.

Calculate the marginal product of capital in East Ablished between points A and B. Calculate the marginal product of capital in East Ablished between points A and B. marginal product of capital between points A and B: ...........units Calculate the marginal product of capital in Established between points C and D. marginal product of capital between points C and D: ........... units Ceteris paribus, which economic principle explains the difference between the growth rate of output in Unestablished and the growth rate in East Ablished? ? The marginal product of capital is greater in the more-developed country of East Ablished, resulting in a faster growth rate in output.

? The marginal product of capital is lower in the less-developed country of Unestablished, resulting in a faster growth rate in output.

? The marginal product of capital is lower in the more-developed country of East Ablished, resulting in a faster growth rate in output.

? The marginal product of capital is greater in the less-developed country of Unestablished, resulting in a faster growth rate in output.

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Output (Y) 900 800 700 600 500 400 300 200 100 0 East ablished > B Y =f(K) 100 200 300 400 500 600 700 800 900 Capital (K) Output (Y) 900 800 700- 600- 500- 400- 300- 200 100- 0 с D Uneastablished Y=f(K) 100 200 300 400 500 600 700 800 900 Capital (K) Output (Y) 900 800 700 600 500 400 300 200 100 0 East ablished > B Y =f(K) 100 200 300 400 500 600 700 800 900 Capital (K) Output (Y) 900 800 700- 600- 500- 400- 300- 200 100- 0 с D Uneastablished Y=f(K) 100 200 300 400 500 600 700 800 900 Capital (K)

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1 In Established at point A the output level is 400 units and at point B the output le... View the full answer