A firm can use three different production technologies, with capital and labor requirements at each level of output as follows:

Daily Output

Technology 1

Technology 2

Technology 3

K

L

K

L

K

L

100

3

7

4

5

5

4

150

3

10

4

7

5

5

200

4

11

5

8

6

6

250

5

13

6

10

7

8

Suppose the firm is operating in a high-wage country, where capital cost id $100 per unit per day and labor cost is $80 per worker per day, for each level of output, which technology is the cheapest?

Now suppose the firm is operating in low wage country, , where capital cost id $100 per unit per day and labor cost is $40 per worker per day, for each level of output, which technology is the cheapest?

Suppose the firm moves from a high-wage to a low-wage country but that its level of output remains constant at 200 units per day, how will its total employment change?