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If the Hourly Wage of German Workers Is $6, the Hourly

Question 91

Multiple Choice

If the hourly wage of German workers is $6, the hourly wage of Canadian workers is $10, and German workers produce half as much output per hour as Canadian workers, all else equal, it would be efficient to locate production facilities in:


A) Germany since the cost per unit of output will be higher.
B) Germany since the cost per unit of output will be lower.
C) Canada since the cost per unit of output will be higher.
D) Canada since the cost per unit of output will be lower.

Correct Answer:

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