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A firm is using a combination of labor ill and capital [kl such that their MRTSElkl is less than the ratio of their input prices
A firm is using a combination of labor ill and capital [kl such that their MRTSElkl is less than the ratio of their input prices [wfrl where w is the price of labor and r is the prioe of capital. How should the firm adjust its usage of labor and capital to decrease its cost of production while holding output oonstant? O a the rm should decrease its use of capital and increase its use of labor 0 b. the rm should make no changes 0 c the rm should increase its use of capital and decrease its use of labor
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