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At the current levels of employment of factors K and L, MP of capital is 600 and MP of labour is 200. Given that the
At the current levels of employment of factors K and L, MP of capital is 600 and MP of labour is 200. Given that the price of K is $40 and the price of labour is $20, the firm should________________ the use of capital (K).
- A.increase
- B.decrease
- C.not change
- D.none of the above
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