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The marginal product for the last worker hired was 70, and the wage paid for that worker was $35. The marginal product for the last
The marginal product for the last worker hired was 70, and the wage paid for that worker was $35. The marginal product for the last piece of capital was 200, and the cost of the piece of capital was $50. In order to produce at least cost, the firm should
- a. hire more workers and buy less capital
- b. buy more capital and lay off workers
- c. expand the factory
- d. demand a reduction in vacation benefits for workers
- e. lay off workers and reduce the amount of capital
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