Top Posters
Since Sunday
82
a
50
14
10
G
9
I
8
m
8
7
m
7
K
7
6
b
6
New Topic  
nyounger nyounger
wrote...
Posts: 372
A week ago

Figure 11-14



Figure 11-14 shows the optimal input combinations for the production of a given quantity of cotton in the United States and in China.



Refer to Figure 11-14. Consider the following statements:

a.

For each country, the marginal product per dollar spent on labor equals to the marginal
product per dollar spent on capital.

b.

The price of labor is relatively higher in the United States than in China and the price of capital
is relatively lower in the United States than in China.

c.

The price of labor and the price of capital are relatively higher in the United States than in
China.

Based on the figure, which of the statements above is true?



All of the statements are true.



statements a and b only



statements b and c only



statements a and c only

Textbook 

InMicro


Edition: 1st
Authors:
Read 91 times
5 Replies
Replies
Answer verified by a subject expert
johnsykejohnsyke
wrote...
Posts: 329
A week ago
Sign in or Sign up in seconds to unlock everything for free.

statements a and b only

1

Related Topics

wrote...
A week ago
Appreciate the effort, thank you!
wrote...
A week ago
You're very welcome ... please mark the topic solved when you get a chance
wrote...
A week ago

Figure 11-14



Figure 11-14 shows the optimal input combinations for the production of a given quantity of cotton in the United States and in China.



Refer to Figure 11-14. Which of the following could explain why the United States and China use different input combinations to produce a given quantity of cotton and yet, each country produces that quantity at the lowest possible cost?



because the marginal product per dollar spent on capital yields a higher return in the United States than in China



because the United States has more sophisticated technology and therefore is more efficient in cotton production



because the prices of inputs are not the same for the two countries: labor is relatively lower-priced and capital is relatively higher priced in the United States



because the prices of inputs are not the same for the two countries: labor is relatively lower-priced and capital is relatively higher priced in China

wrote...
A week ago

because the prices of inputs are not the same for the two countries: labor is relatively lower-priced and capital is relatively higher priced in China

New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  91 People Browsing
 107 Signed Up Today
Your Opinion
Who's your favorite biologist?
Votes: 48

Previous poll results: What's your favorite coffee beverage?
Related Images
 2521
 156
 95