23 Jul IF NOT WHAT SHOULD IT DO AND WHY?
An American company that sells consumer electronics products has manufacturing facilities in Mexico Show more An American company that sells consumer electronics products has manufacturing facilities in Mexico Taiwan and Canada. The average hourly wage output per person (used as a proxy for marginal product in this problem) and overhead cost for each site are as follows: Hourly Wage Rate $ 1.50-Mexico $3.00-Taiwan $6.00-Canada Output per Person 10-Mexico 18-Taiwan 20-Canada Fixed Overhead Cost $150000-Mexico $90000-Taiwan $110000-Cananda A. Given these figures is the firm currently allocating its production resources optimally? If not what should it do and why? Show all your calculations. B. Suppose the firm wants to consolidate all its manufacturing into one facility. Where should it locate? Explain. Show less
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