Multiple Choice
Suppose the marginal product of labor is 8 and the marginal product of capital is 2.If the wage rate is $4 and the price of capital is $2, then in order to minimize costs the firm should use
A) more capital and less labor.
B) more labor and less capital.
C) three times more capital than labor.
D) none of the statements associated with this question are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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