Multiple Choice
A firm combines two resources, A and B, to produce an output, Q. Their respective marginal revenue products are $30 and $21. A costs $15 a unit and B $7 a unit. To reduce the cost of Q,
A) more B and less A should be used.
B) more A and less B should be used.
C) more of both resources should be used.
D) less of both resources should be used.
Correct Answer:

Verified
Correct Answer:
Verified
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