Short Answer
A firm is using 20 units of labor and 30 units of capital to produce 4,000 units of output. At this combination the marginal product of labor is 50 and the marginal product of capital is 40. The price of labor is $30 and the price of capital is $20.
-The firm can increase capital by one unit and decrease labor by _________ units while keeping cost constant. This will ____________ output by _________.
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