a.Suppose that the marginal product of the last worker employed by a firm is 40 units of
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Question:
a.Suppose that the marginal product of the last worker employed by a firm is 40 units of output per day and the daily wage that the firm must pay is $20, while the marginal product of the last machine rented by the firm is 120 units of output per day and the daily rental price of the machine is $30. Show if the firm is using the cost-minimizing combination of labour and capital and give appropriate advice if necessary.
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