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Companies Can Rent a Manufacturing Robot Named RoboMan for $2,500

Question 26

Multiple Choice

Companies can rent a manufacturing robot named RoboMan for $2,500 a month and must pay workers $20 an hour. The value of the marginal product of Roboman is $5,000, and the value of the marginal product of labor is $20. Companies should hire _________ RoboMen and _________ workers.


A) more; fewer
B) more; more
C) fewer; fewer
D) fewer; more
E) the same amount of; more

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