The local market in country M will not buy the eco product concept for more than $10. However, upper-level management would like to know if it is still possible for BB to take advantage of the cheaper labor and material costs by shipping the products back to the United States for sale. To produce 500 bottles of Green Shampoo in M, the labor cost would be $1,000, the materials cost would be $4,000, and the overhead cost would be $3,000 (including shipping and other fees). The selling price per bottle of Green Shampoo is $18. It is known that the multifactor productivity of U.S. plants is around 2. Do you recommend locating the new plant in country M based on multifactor productivity? Select an option from the choices below and click Submit. Yes, it has a higher productivity than the U.S. plants. Yes, the productivity in M and the United States is the same. No, the productivity in M is lower than in the U.S. plants

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To determine whether its recommended to locate the new plant in country M based on multifactor p... View the full answer