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Suppose that the MPl = 50 and the per unit price of labor is 25. The MPk = 100 and the per unit price of
Suppose that the MPl = 50 and the per unit price of labor is 25. The MPk = 100 and the per unit price of capital is 25.
- Is this firm minimizing the cost of producing a given level of output?
- If the firm is not minimizing the cost of producing the given amount of output, what should this firm do?
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