In the long run, a firm seeks the combination of two factors a and b such that:

Name: In the long run, a firm seeks the combination of two factors a and b such that:
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In the long run, a firm seeks to equalize the marginal product per dollar spent on each factor of production. This is achieved when the ratio of the marginal product of factor a to its price is equal to the ratio of the marginal product of factor b to its price, as stated in option A.

In the Long Run, a Firm Seeks the Combination of Two