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Suppose the marginal product of labor is 8 and the marginal product of labor is 2. If the wage rate is $4 and the price
Suppose the marginal product of labor is 8 and the marginal product of labor is 2. If the wage rate is $4 and the price of capital is $2, then in order to minimize costs the firm should useblank_______.
A more labor and less capital
B two times more capital than labor
C three times more capital than labor
D more capital and less labor
Can you help me understand this question.
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