The reason that average labor costs are higher in the United States than in Haiti is that

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The reason that average labor costs are higher in the United States is because workers are more productive, meaning they can create more output with the same amount of input. This productivity is reflected in higher wages as companies are willing to pay more for more productive workers. Haiti, on the other hand, has lower productivity levels, leading to lower labor costs. Neither union representation nor comparative advantage play a significant role in explaining the difference in labor costs between the two countries.

The Reason That Average Labor Costs Are Higher in the United