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Suppose that firm is always able to substitute 3 units of labor (L) with 4 units of capital (K). Which of the following is correct? The law of diminishing MRTS, fails to hold and thus Lagrange multiplier method is not applicable The law of diminishing MRTS, & holds and thus Lagrange multiplier method is applicable The law of diminishing MRTS, fails to hold and capital and labor are perfect complements. O The law of diminishing MRTS fails and thus Lagrange multiplier method is applicable