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A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10, the price of capital
A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20. The producer Select one: a is using the optimal combination of capital and labor b. should use more capital and less labor. c should use more labor and less capital. d. cannot determine without more information
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