Final answer:
In less developed nations, labor and production costs are typically higher due to factors such as lower wages, limited labor productivity, and limited access to technology and capital.
Step-by-step explanation:
The correct answer is c. Labor and production. In less developed nations, labor costs are typically higher due to lower wages and limited labor productivity. Production costs are also higher in these nations due to factors such as limited access to technology and capital. For example, firms in less developed nations may have to rely on outdated machinery or inefficient production methods, which can drive up production costs.