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We have the following information for a firm: Marginal product of labor = 100 Wage = 5 Marginal Product of Capital = 200 Capital rent

We have the following information for a firm:

Marginal product of labor = 100

Wage = 5

Marginal Product of Capital = 200

Capital rent = 10

Which of the following is true?

The firm already has an optimized combination of labor and capital.

The firm needs to increase its capital.

The firm needs to increase its labor.

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