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1) An American Company that sells consumer electronics products has manufacturing facilities in Mexico, Taiwan, and Canada. The average hourly wage, output, and annual overhead cost for each site are as follows: Canada $6.00 20 b. If not, what should it do? (Consider output per person as a proxy for marginal product). Suppose the firm wants to consolidate all its manufacturing into one facility. Where should it locate? Explain.
1. An American company that sells consumer electronics products has manufacturing facilities inMexico, Taiwan, and Canada. The average hourly wage, output per person (used as a proxy formarginal…
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