3 Assuming that the production technology and domestic demand of China and the U.S. are similar, the
capital/labor factor endowment ratio of the United States is 0.5, and that of China is 0.02. Compared with
that in China, which of the followings about the U.S. cost of capital relative to the cost of labor is correct?
(A) It is higher than that in China.
(B) It is lower than that in China.
(C) There is no difference between two countries.
(D) These two countries cannot be compared with each other.