In the Long Run,a Profit-Maximizing Firm Will Select Capital and Labor

question 53

Multiple Choice

In the long run,a profit-maximizing firm will select capital and labor so that

• A) the marginal product of labor equals the marginal product of capital.
• B) the wage divided by the marginal product of labor equals the rental cost of a unit of capital divided by the marginal product of capital.
• C) labor equals capital.
• D) the wage equals the rental cost of a unit of capital.

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