Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 22 - Immigration - Problems - Page 469: 2d

Answer

No

Work Step by Step

Higher labor costs per hour do not always imply higher labor costs per unit Unit labor cost = (wage per hour) ÷ (output per hour). Higher wages can be offset by much higher productivity so that the cost per unit can be lower despite higher per-hour wages. (That’s exactly what we see here.)
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