A company is trying to decide whether it should produce good X in the U. S. or in Mexico. Suppose a U. S. worker earns $15 per hour and a worker in Mexico earns $4 per hour. Also suppose that the marginal physical product (MPP) of the U. S. worker is 12 units of good X and the MPP of the Mexican worker is 3 units of good X. Refer to Situation 27-1. If good X is produced in the U. S. the output per $1 of cost would be than if good X were produced in Mexico, thus it would be best to produce good X ina. higher; Mexico. b. lower; Mexico. c. higher; the United States. d. lower; the United States.
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A company is trying to decide whether it should produce good X in the U. S. or in Mexico. Suppose a...
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