A firm will be hiring labor and capital in profit-maximizing amounts when
A) MRP capital/price of capital equals MRP labor/price of labor.
B) MRP capital/MRP labor equals price of labor/price of capital.
C) MRP capital/price of capital equals MRP labor/price of labor equals 1.
D) the MRP of the last unit hired of both labor and capital are the same.
Correct Answer:
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