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A firm is considering moving from the United States to Mexico. The firm pays its U. S. workers $30.00 per

A firm is considering moving from the United States to Mexico. The firm pays its U. S. workers $30.00 per hour. Currently, U. S. workers have a marginal product of 45 units, whereas Mexican workers have a marginal product of 9 units. In order for the firm to reduce its wage cost per unit of output by moving to Mexico, the wages in Mexico must be belowper hour.

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