Which of the following is an example of the law of one price in action?

A. Wages in India are lower than wages in the United States, and so firms move their call centers to India. This tends to raise wages in India and depress wages in the United States.
B. If one county has a comparative advantage in producing a particular good, another country must have a comparative advantage in producing another good.
C. Prices are just one of the many factors that firms use when deciding where to locate production.
D. Because most industries in the United States are dominated by one or two firms, the dominant firm sets the price and other firms in the industry follow.


Answer: A

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