Multiple Choice
Suppose a firm employs two kinds of inputs,capital at $100 per unit,and labour at $25 per unit.If the marginal product of capital is 50,then the firm should in order to minimize its production costs.
A) employ more labour and more capital
B) employ more capital and less labour
C) employ more labour and less capital
D) not change its current factor use
E) There is insufficient information to make a recommendation.
Correct Answer:

Verified
Correct Answer:
Verified
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