Multiple Choice
A purely competitive firm in the factor and product markets sells its output for $1 and pays factors PL = $4 and PC = $3. What is the profit-maximizing combination of L and C for the firm?
A) 8 of L and 8 of C
B) 4 of L and 3 of C
C) 5 of L and 2 of C
D) 6 of L and 6 of C
Correct Answer:

Verified
Correct Answer:
Verified
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