Multiple Choice
Canada has a much lower population density than does Japan.Therefore,the price of land (relative to the price of labour) is lower in Canada than in Japan.Consider a Canadian firm and a Japanese firm,both producing rice,both having access to the same technologies,and both striving to minimize their costs.The Canadian firm will use the two inputs,land and labour,in such a way that its land/labour ratio is
A) equal to that of the Japanese firm.
B) lower than that of the Japanese firm.
C) higher than that of the Japanese firm.
D) equal to one.
E) indeterminate as there is insufficient information to know.
Correct Answer:

Verified
Correct Answer:
Verified
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