Multiple Choice
If the marginal product of labor is 100 and the price of labor is 10,while the marginal product of capital is 200 and the price of capital is $30,then what should the firm?
A) The firm should use relatively more capital
B) The firm should use relatively more labor
C) The firm should not make any changes - they are currently efficient
D) Using the Equimarginal Criterion,we can't determine the firm's efficiency level
E) Both c and d
Correct Answer:
Verified
Correct Answer:
Verified
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