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    Macroeconomics Study Set 38
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    Exam 4: A Model of Production
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    If MPK = R, the Firm
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If MPK = R, the Firm

Question 61

Question 61

Multiple Choice

If MPK = r, the firm:


A) should hire more labor.
B) should hire more capital until MPK= w.
C) should hire more capital until MPK = 0.
D) should get rid of some capital until MPK = r.
E) has the optimal amount of capital.

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