Question: * 6 . 3 A U . S . synthetic rubber manufacturer is considerin moving its production to a Japanese plant. Its esti mated production

*6.3 A U.S. synthetic rubber manufacturer is considerin moving its production to a Japanese plant. Its esti mated production function is q=10L0.5K0.5(Flath 2011). In the United States, w=10=r. At it: Japanese plant, the firm will pay a 10% lower wag! and a 10% higher cost of capital: w**101.1 anc r**=1.110=11. What are L and K, and wha is the cost of producing q=100 units in both coun tries? What would be the cost of production in Japar if the firm had to use the same factor quantities as it the United States? M
 *6.3 A U.S. synthetic rubber manufacturer is considerin moving its production

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