Multiple Choice
Suppose a firm employs two inputs,X and Y,and that at their current levels of use MPX/PX > MPY/PY.To minimize the cost of production,the firm should hire
A) more input Y and less input X.
B) more input X and less input Y.
C) more input Y only if its price falls.
D) more input X only if its price increases.
E) more input X only if its price decreases.
Correct Answer:

Verified
Correct Answer:
Verified
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