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In India, most production processes are far more labor intensive than in the U.S. If firms in both India and the U.S. are minimizing costs,
In India, most production processes are far more labor intensive than in the U.S. If firms in both India and the U.S. are minimizing costs, and if firms in both countries have access to the same technology, what must be true about the prices of capital and labor in India relative to the U.S.? (Assume that the good being produced is consumed domestically). Explain.
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