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I don't know how to solve question 6. At XYZ a unit of capital costs three times as much as a unit of labor. If
I don't know how to solve question 6. At XYZ a unit of capital costs three times as much as a unit of labor. If MPK= 10, MPL= 5, then XYZ
is minimizing costs at the current output level.
optimally uses more capital and less labor to raise output at current cost.
optimally uses less capital and more labor to raise output at current cost.
None of these are correct.
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