Firms in different countries that face different input prices may produce the same good using different combinations of inputs, even though they have access to the same technology.

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Firms may face different prices for labor, capital, raw materials, and other inputs in different countries, which may affect their production decisions even if they have access to the same technology. For example, a firm in a country where labor is cheap may use more labor-intensive production methods than a firm in a country where capital is cheap. This may result in different levels of efficiency and productivity, even if the same good is being produced.

Firms in Different Countries That Face Different Input Prices May