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

U. S. labor productivity equaled 40 units per hour and Japan's 15 units per hour.

Question

Trevor Blackburn

Business

14 November, 01:39

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

U. S. labor productivity equaled 40 units per hour and Japan's 15 units per hour.

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Answers (1)

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Kason Bryant · Answer 1

True

Explanation:

This simply means that the US would be at an advantage over Japan if in the U. S, labor productivity level of a worker equaled 40 units per hour while in Japan it is 15 units per hour.

Since a company overall performance is determine usually by wotkers production capacity, the US workers would be producing more in an hour for the company at reduced cost than Japanese workers.