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When output Y has a price equal to $25, the factor input cost isw X = $200, and the MP X = 8; the employment

When output Y has a price equal to $25, the factor input cost iswX = $200, and the MPX = 8; the employment offactor input X:

a.

is optimal.

b.

should be expanded.

c.

should be reduced.

d.

none of the above.

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