It is generally observed that in relatively poor countries, firms use more labor and less capital to produce the same go

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answerhappygod
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It is generally observed that in relatively poor countries, firms use more labor and less capital to produce the same go

Post by answerhappygod »

It is generally observed that in relatively poor countries,
firms use more labor and less capital to produce the same goods as
are produced with a small amount of labor and much capital in
richer countries. Are the firms in poor countries inefficient?
Discuss in terms of both technological and economic efficiency.
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