Alpha has $40,000 of capital per worker, while Beta has $5,000 of capital per worker. In all other respects, the two countries are the same. According to the principle of diminishing returns to capital, an additional unit of capital will increase output in Alpha compared to Beta, holding other factors constant.
a) more
b) less
c) not at all
d) by the same amount

b) less

Explanation:

Adding 1,000 capital to Alpha will represnet 1,000/40,000 = 2.5% increase

while adding  to Beta will represent 1,000/5,000 = 20% increase

Is important when doing real-life analysis the asusmption we made: holding other factors constant and that in all other respects the two countries are the same, as in real life there are cultural, religion, politics, natural resource and even geography that makes the analysis differ.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

choices : )

explanation: