Multiple Choice
Suppose the wage rate is $15 per hour and the rental rate of capital is $10 per hour.If the
Marginal product of labor is 60 and the marginal product of capital 10,the profit maximizing firm should:
A) hire more labor and less capital.
B) utilize more capital and less labor.
C) maintain its current input mix of capital and labor.
D) employ more of both capital and labor.
Correct Answer:
Verified
Correct Answer:
Verified
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