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Suppose capital costs$108per unit and labor costs$92per unit. If the marginal product of capital is 43 and the marginal product of labour is53,the firm should_____________(increase
Suppose capital costs$108per unit and labor costs$92per unit. If the marginal product of capital is 43 and the marginal product of labour is53,the firm should_____________(increase or decrease or maintain) their use of capitaland _____________ (increase or decrease or maintain) their use of labor.
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