a. Suppose the firm is operating in high-wage country, where capital cost is $100 per unit per day and labor cost is $80 per worker per day. For each level of output, which technology is cheapest? b. Now suppose the firm is operating in a low-wage country, where capital cost is $100 per unit per day but labor cost is only $40 per unit per day. For each level of output, which technology is cheapest? c. Suppose the firm move from a high-wage to a low-wage country but its level of output remains constant at 200 units per day. How will its total employment change?
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