Why is that cost-minimizing factor choice be identical

Reference no: EM13222479

A company operates plants in both the united states(where capital is relatively cheap and labor is relatively expensive) and Mexico(where labor is relatiely cheap and capital is relatively expensive).

A. Why is it unlikely that the cost-minimizing factor choice wil be identical between the two plants?

B. Under what circumstances wil the input choice be relatively similar?

Reference no: EM13222479

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