3. Please use these economic concepts to answer the questions on the following article. The 50 U.S. workers who sort and box shrimp at Cold Storage Inc. are quick with their hands. With the help of machines, they can grade and package for freezing about 8,500 pounds of shrimp an hour. Their base pay is $4.30 an hour; their takewhome pay is $4.12 an hour. The 17"6 workers who peel and clean shrimp at Camarones Selectos SA. in Mexico are also quick with their hands. Without machines, they clean about 2,200 pounds of shrimp an hour. Their base pay is 1.99 per hour; their take~home pay is 1.75 an hour. It is that basic disparity in wages that both attracts Mexican workers into the US. and propels U.S. laborintensive industries into Mexico. U.S. labor union officials charge that both movements are costing U.S. workers jobs at a time when the unemployment rate is high. A look at the shrimp industry in Texas shows the following picture. Virtually all the jobs requiring labor are performed by men and women of Mexican origin. Shrimp boat owners and shrimp company processors contend that they simply cannot nd many U.S. citizens who are willing to work at jobs, which are oen part time, for wages at the Federal minimum of $4.30 an hour or slightly higher. At the same time, they say there is an abundant supply of Mexicans who are eager to take those jobs. But for the most laborintensive chores of peeling and cleaning shrimp, processors avoid even U.S. minimum wages by trucking their shrimp across the border into Mexico. Wages of $1.99 an hour seem small by U.S. standards, but they are above average for workers in Mexico. Americans and Mexicans who run processing plants, as well as a variety of other factories on the Mexican side of the border, contend that these plants actually savejobs in the United States. Without them, they contend, many U.S. companies would move their entire operation to foreign soil to remain competitive. (i) The newspaper article indicates that shrimp peelers in the U.S. get $4.30 per hour, while shrimp peelers in Mexico {across the border) receive 331.99 per hour. How would you predict this difference in the price of labor affects the relative factor proportions of shrimp peelers (labor, L*) versus machinerv (capital. 10') in rms in the U.S. versus Mexico