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You Know That the Rental Price of Capital Is $3,000,the

Question 115

Multiple Choice

You know that the rental price of capital is $3,000,the rental price of land is $2,000,and the wage of labor is $100.The value of the marginal product produced by each factor is $30,000,$4,000,and $200,respectively.You would advise the company to hire more


A) labor.
B) land.
C) capital.
D) less labor and more land.
E) less capital and more labor.

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