Refer to the Scenario Above

Multiple Choice

Refer to the scenario above.It is found that a one-unit increase in capital leads to a higher increase in the production of good X in Farm Country than in Industry Country.Why might this be the case if both countries have the same amount of total efficiency units of labor?

A) Physical capital stock is smaller in Farm Country.
B) Increase in output is greater if more capital is used in production.
C) Physical capital stock is greater in Farm Country.
D) Increase in output is smaller if less capital is used in production.