Situation 26-2 A Company Is Trying to Decide Whether It Should Produce

question 120

Multiple Choice

Situation 26-2
A company is trying to decide whether it should produce good Y in the U.S. or in Mexico. Suppose a U.S. worker earns $12 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 10 units of good Y and the MPP of the Mexican worker is 5 units of good Y.
-Refer to Situation 26-2. The output produced per $1 of cost in the Mexico. is

• A)1.25 units of good Y.
• B)0.80 units of good Y.
• C)9.0 units of good Y.
• D)1.0 units of good Y.

---

Definitions:

Multigenerational

Multigenerational describes families or other social settings that include members from several generations, often highlighting the dynamics and cultural aspects of interactions between young, middle-aged, and older individuals.

Blended Family

A family unit consisting of a couple and their children from this and all previous relationships.

Simple Step-Family

A familial setup where one of the adults has children from a previous relationship, but the couple has no mutual children.

Complex Step-Family

A family structure where one or both partners have children from previous relationships, leading to a blend of parents and children with varied relationships.