Situation 26-1 a Company Is Trying to Decide Whether It

question 72

Multiple Choice

Situation 26-1 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 26-1. The output produced per $1 of cost in the U.S. is

• A)0.80 units of good X.
• B)1.25 units of good X.
• C)180 units of good X.
• D)3 units of good X.

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Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test, used to determine whether to reject the null hypothesis.

Number of Participants

Refers to the total count of individuals involved in a study or experiment, providing a base for drawing conclusions.

T Test

A statistical test used to compare the means of two groups to see if they are significantly different from each other.

Pairs of Observations

Two related data points collected from a study that are analyzed together to understand correlations or differences.