A rm is considering moving from the United States to Mexico. The rm pays its U.S. workers

Question:

A rm is considering moving from the United States to Mexico. The rm pays its U.S. workers $12 per hour. Current U.S. workers have a marginal product of forty, whereas the Mexican workers have a marginal product of ten. How low would the Mexican wage have to be for the rm to reduce its wage cost per unit of output by moving to Mexico?

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