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If the Marginal Product Per Dollar Spent on Capital Is

Question 33

Multiple Choice

If the marginal product per dollar spent on capital is less than the marginal product per dollar spent on labor,then in order to minimize costs the firm should use:


A) less capital and more labor.
B) less labor and more capital.
C) less labor and less capital.
D) more labor and more capital.

Correct Answer:

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