A firm's choice about how much physical capital to employ differs from its choice of how much labor to employ because
A) the firm has to pay for its capital
B) the productivity of labor depends on the firm's production function
C) firm must compare the marginal costs and benefits of acquiring more capital
D) firms do not own the labor they employ,but they frequently purchase capital outright
E) labor is productive but capital is not
Correct Answer:
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