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Canada Has a Much Lower Population Density Than Does Japan

question 48

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Canada has a much lower population density than does Japan.Therefore,the price of land (relative to the price of labour) is lower in Canada than in Japan.Consider a Canadian firm and a Japanese firm,both producing rice,both having access to the same technologies,and both striving to minimize their costs.The Canadian firm will use the two inputs,land and labour,in such a way that its land/labour ratio is


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