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tacobeo tacobeo
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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. If good X is produced in the U.S. the output per $1 of cost would be ___________________ than if good X were produced in Mexico, thus it would be best to produce good X in



▸

higher; Mexico.



▸

lower; Mexico.



▸

higher; the United States.



▸

lower; the United States.

Textbook 
Economics

Economics


Edition: 12th
Author:
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mooltipasmooltipas
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7 months ago
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