Assume That Labor Is the Only Factor of Production and That

question 11

Multiple Choice

Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in Japan are $10 per hour. Production costs would be lower in the United States as compared to Japan if

• A) U.S. labor productivity equaled 40 units per hour and Japan's 15 units per hour.
• B) U.S. labor productivity equaled 30 units per hour and Japan's 20 units per hour.
• C) U.S. labor productivity equaled 20 units per hour and Japan's 30 units per hour.
• D) U.S. labor productivity equaled 15 units per hour and Japan's 25 units per hour.
• E) U.S. labor productivity equaled 15 units per hour and Japan's 40 units per hour.

---

Definitions:

Firm's Profitability

A financial metric indicating the degree to which a company generates profit from its operations.

Overall Impact

The total effect or significance of an event, decision, or action on a system, organization, or community.

Increase Competition

A situation where more competitors enter the market, intensifying the competitive environment.

E-commerce

The buying and selling of goods and services using the internet, and the transfer of money and data to execute these transactions.