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CountrySlim84 CountrySlim84
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7 months ago

Situation 27-1

A company is trying to decide whether it should produce good X in the U.S. or in Mexico.  Suppose a U.S. worker earns $15 per hour and a worker in Mexico earns $4 per hour.  Also suppose that the marginal physical product (MPP) of the U.S. worker is 12 units of good X and the MPP of the Mexican worker is 3 units of good X.

Refer to Situation 27-1. The output produced per $1 of cost in the U.S. is



▸

0.80 units of good X.



▸

1.25 units of good X.



▸

180 units of good X.



▸

3 units of good X.

Textbook 
Economics

Economics


Edition: 12th
Author:
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dioxy186dioxy186
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7 months ago
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CountrySlim84 Author
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7 months ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
Liarec
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Yesterday
Good timing, thanks!
deathwing
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2 hours ago
This calls for a celebration Person Raising Both Hands in Celebration
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