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If a high-income country and a low-income country have a common technology, and the wage-rental ratio (w/r) is lower in the low-income country, then production
If a high-income country and a low-income country have a common technology, and the wage-rental ratio (w/r) is lower in the low-income country, then production is more labor-intensive in the low-income country. Now suppose that the marginal products of labor and capital are 10 times higher in the high-income country at every mix of inputs. How does the difference in technologies impact the capital-labor ratio (K/L) in the two countries? Limit your answer to one paragraph. You are encouraged to use a graphical model, a mathematical model, or both
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