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Sam's Company Produces Output with Labor and Capital

question 7

Essay

Sam's company produces output with labor and capital.At the current quantities of labor and capital,the following information is obtained: the output produced by spending one more dollar on labor exceeds the output produced by spending one more dollar on capital.In the long run,is Sam minimizing costs? If not,explain how capital and labor should change (holding output constant)and how this relates to the Sam's company produces output with labor and capital.At the current quantities of labor and capital,the following information is obtained: the output produced by spending one more dollar on labor exceeds the output produced by spending one more dollar on capital.In the long run,is Sam minimizing costs? If not,explain how capital and labor should change (holding output constant)and how this relates to the    condition.
condition.


Definitions:

Connective

Referring to connective tissue, which supports, binds together, and protects tissues and organs in the body.

Cartilage

A flexible connective tissue found in various parts of the body, such as the joints, rib cage, ear, nose, bronchial tubes, and intervertebral discs.

Epithelial

Relating to the epithelium, a layer of cells covering the body surfaces, lining cavities, and forming glands.

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