Fruit canning plants in Malaysia are relatively labor intensive and those in the US are relatively capital intensive. An economist would say: Malaysia has a lower income than the US because it doesn't employ enough capital in production. one of these plants must have selected an incorrect technology for canning fruit. firms select methods of production to reflect relative factor prices in their locations. economists would be stumped to explain such a discrepancy.

Fruit canning plants in Malaysia are relatively labor intensive and those in the US are relatively capital intensive. An economist would say: Malaysia has a lower income than the US because it doesn't employ enough capital in production. one of these plants must have selected an incorrect technology for canning fruit. firms select methods of production to reflect relative factor prices in their locations. economists would be stumped to explain such a discrepancy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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