Problem
In the one-sector model with perfect capital mobility, assume that the technologies are identical across countries and homogeneous of degree one.
(a) If the rental rates are equalized across countries, what does this imply about the labor-capital ratios used in production?
(b) Therefore, how do wages compare across countries?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.