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Suppose a firm earns $ 1 0 for every employee they hire at $ 8 h r . They earn $ 2 5 for every
Suppose a firm earns $ for every employee they hire at $
They earn $ for every $ they spend on capital.
From this we know that the firm is producing at:
Profitmaximizing point and a leastcost point
Profitmaximizing point but not a leastcost point
Leastcost point but not a profitmaximizing point
Neither profitmaximizing nor leastcost point
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