Question: Please show your work A U.S. electronics firm is considering moving its production abroad. Its production function is q= L0.6K.4 (based on Hsieh, 1995), so

Please show your work

Please show your work A U.S. electronics firm is considering moving its

A U.S. electronics firm is considering moving its production abroad. Its production function is q= L0.6K.4 (based on Hsieh, 1995), so its MPL = 0.6K0.4 / 10.4 and its MPK = 0.41 0.6 / K0.6 In the United States, w =$6 and r=4. In Mexico, the wage is 30% lower than in the United States but the firm faces the same cost of capital: w* = $4.20 and * = 4. What are L and K and what is the cost of producing q = 100 units in both countries? (for all of the following questions, enter a numeric response using a real number rounded to two decimal places) In the U.S., L is

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