Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that a firm is considering gpening a plant on the moon, and the current exchange rate is 1,300 moon pieces (mp) per dollar. Also,

image text in transcribed
Suppose that a firm is considering gpening a plant on the moon, and the current exchange rate is 1,300 moon pieces (mp) per dollar. Also, the wage rate is 23,040mp per hour. Suppose further that U.S. workers can produce 240 units per hour, while workers on the moon are expected to be able to produce 380 units per hour (the lower gravity level helps them work faster). a. The moon wage rate without considering productiviy is $hr (round your response to the nearest penny). b. The moon "relative" wage rate considering productivity is $ /hr (round your response to the nearest penny). c. Suppose that the U.S. wage rate is $24.50 per hour. If the U.S. managers want to become the location of choice for production, and if they cannot lower their wage rate due to labor union agreements, what does the labor productivity in the U.S. need to become? The labor produtivity in the U.S. needs to be at least units/hr (round your response to one decimal place)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sustainable Fashion Supply Chain Management

Authors: Tsan Ming Choi, T C Edwin Cheng

1st Edition

3319127020, 978-3319127026

More Books

Students also viewed these General Management questions