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UPLU 2. (9 points Suppose that a firm is considering opening a plant on the moon, and the current exchange rate is 1280 moon pieces

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UPLU 2. (9 points Suppose that a firm is considering opening a plant on the moon, and the current exchange rate is 1280 moon pieces (mp) per dollar. Also, the wage rate is 23,040 mp 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. What is the "relative" wage rate (in dollars, rounded to the nearest penny) of operating on the moon, after taking productivity differences into account? b. Suppose that the U.S. wage rate is $23.50 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 (rounded to one decimal place)

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