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Concerning the Market for Radio Assemblers, Assume That the Wage

Question 58

Multiple Choice

Concerning the market for radio assemblers, assume that the wage rate is $12 per hour in the U.S. and $3 per hour in Mexico. Also suppose that the marginal product of a Mexican worker is 3 radios per hour. A U.S. worker will be less costly to employ than the Mexican worker if the marginal product of the U.S. worker is


A) 4 radios per hour
B) 8 radios per hour
C) 11 radios per hour
D) 16 radios per hour

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