4. Consider the model of a firm that produces final goods using R&D and components as inputs,...

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4. Consider the model of a firm that produces final goods using R&D and components as inputs, with cost data as follows:

Components: Total costs of production = PC · QC = 200 Earnings of high-skilled labor = WH · HC = 20 Earnings of low-skilled labor = WL · LC = 80

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International Economics

ISBN: 9781429278423

4th Edition

Authors: Robert C. Feenstra; Alan M. Taylor

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