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In the Long Run,a Profit-Maximizing Firm Will Select Capital and Labor

Question 53

Multiple Choice

In the long run,a profit-maximizing firm will select capital and labor so that


A) the marginal product of labor equals the marginal product of capital.
B) the wage divided by the marginal product of labor equals the rental cost of a unit of capital divided by the marginal product of capital.
C) labor equals capital.
D) the wage equals the rental cost of a unit of capital.

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