Cost-minimizing factor choice will be identical

Reference no: EM131153559

A company operates plants in both the US( where capital is relatively cheap and labor is relatively expensive) and Mexico (Where labor is relatively cheap and capital is relatively expensive.

a. Why is it unlikely that the cost-minimizing factor choice will be identical between the two plants? Explain.

b. Under what circumstances will the input choice be relatively similar?

Reference no: EM131153559

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