A firm is operating such that the marginal product of labor is 48 and the marginal product of capital is 12. The firm is minimizing its costs only if
A) the wage is one fourth the rental rate.
B) the rental rate is one fourth the wage.
C) since capital is more productive than labor, the firm must be minimizing cost.
D) Given this information the firm can't be minimizing cost under any circumstances.
Correct Answer:
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