Business, 31.12.2020 01:50 Kaysofine11icloudcom
Suppose a Canadian firm and a Japanese firm both produce rice. Also suppose the ratio of the price of land divided by the price of labour is lower in Canada than in Japan. If they both seek to maximize economic profit, the Canadian firm will use the two inputs, land and labour, in such a way that its land/labour ratio in production:.
A. is equal to one.
B. is higher than that of the Japanese firm.
C. is equal to that of the Japanese firm.
D. is lower than that of the Japanese firm.
E. can't be determined without knowing the absolute prices of land and labour in each country,
Answers: 2
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Suppose a Canadian firm and a Japanese firm both produce rice. Also suppose the ratio of the price o...
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