Suppose the Marginal Product of Labor Is 10 and the Marginal

question 52

Multiple Choice

Suppose the marginal product of labor is 10 and the marginal product of capital is 8.If the wage rate is $5 and the price of capital is $2, then in order to minimize costs the firm should use

• A)more capital and less labor.
• B)more labor and less capital.
• C)equal amounts of labor and capital.
• D)none of the statements associated with this question are correct.

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