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Economics 14th Edition by James Gwartney,Richard Stroup, Russell Sobel ,David Macpherson
Edition 14ISBN: 978-1133561644Economics 14th Edition by James Gwartney,Richard Stroup, Russell Sobel ,David Macpherson
Edition 14ISBN: 978-1133561644 Exercise 2
A firm is considering moving from the United States to Mexico. The firm pays its U.S. workers $12 per hour. Current U.S. workers have a marginal product of forty, whereas the Mexican workers have a marginal product of ten. How low would the Mexican wage have to be for the firm to reduce its wage cost per unit of output by moving to Mexico?
Explanation
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Given, US marginal product of labor is h...
Economics 14th Edition by James Gwartney,Richard Stroup, Russell Sobel ,David Macpherson
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