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Suppose That Japanese and Chinese Workers Are Equally Productive, but Japanese

Question 52

Multiple Choice

Suppose that Japanese and Chinese workers are equally productive, but Japanese workers receive a higher wage than Chinese workers. Then, refusing to hire Chinese workers would


A) increase the firm's costs.
B) decrease the firm's costs.
C) increase the firm's profits.
D) decrease the firm's profits.
E) do both a and d.

Correct Answer:

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