How can automobiles produced in Michigan be sold at the same price as automobiles produced in...

How can automobiles produced in Michigan be sold at the same price as automobiles produced in the southern part of the country? Autoworkers in both places are equally productive, but autoworkers' health insurance premiums in Michigan are much higher than autoworkers' premiums in the South.


		The types of cars produced in the North and South are different, so they are not comparable on price.
		Cash wages of autoworkers in Michigan must be lower than cash wages of autoworkers in the South.
		Autoworkers in Michigan are unionized, while autoworkers in the South are not; unionized workers are able to negotiate higher health benefits.

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Expert Solution

Rahul Sunny answered 1 year ago

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