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

question 17

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.

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