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Assume a firm is currently employing: Factors Price/unit Marginal Product L= 100 $10 10 K=20 $20 40 In order to minimize cost of production Should
Assume a firm is currently employing:
Factors Price/unit Marginal Product
L= 100 $10 10
K=20 $20 40
In order to minimize cost of production
Should the firm hire more capital (K) and less labor (L)?
OR
Should the firm hire less capital and more labor?
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