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Question 3 (Chapter 7) The figure below shows a firm's production with and without offshoring: R&D production 60 BO 100 120 140 200 Component production
Question 3 (Chapter 7) The figure below shows a firm's production with and without offshoring: R&D production 60 BO 100 120 140 200 Component production Full Name: NetlD: (a) In the graph, which line shows the initial level of production for this firm? (b) In "no-offshoring\" equilibrium, how many units of component production will there be? How many units of R&D production will there be? (c) Which line shows the relative prices of skilled versus unskilled workers? (d) If this firm offshores its component production and exports R&D, how many units of each will it have available in equilibrium? (e) How can we measure this firm's gains from offshoring
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