Alpha Geek
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A U.S. electronics manufacturer is considering moving its production abroad. Its production function is 
 (based on Hsieh, 1995), so its 
 and its 
 In the United States, 
 and 
 At its Asian plant, the firm will pay a 10% lower wage and a 10% higher cost of capital: 
and 
 What are L and K, and what is the cost of producing 
 units in both countries? What would the cost of production be in Asia if the firm had to use the same factor quantities as in the United States?
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