Kendra is the owner of Wholesome Farms, a commercial dairy. Kendra employs labor, land, and capital. In
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a. Suppose that Kendra can maximize her profits by employing less labor and more capital than she is currently using but the same amount of land. What three conditions must now hold for Kendra's operations (involving her value of the marginal product of labor, land, and capital) for this to be true?
b. Kendra believes that she can increase her profits by renting and using more land. What three conditions must hold (involving her value of the marginal product of labor, land, and capital) for this to be true?
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