Suppose the marginal product of labor is 8 and the marginal product of capital is 2. If the wage rate is $4 and the price of capital is $2, then in order to minimize costs the firm should use:
A) more capital and less labor.
B) more labor and less capital.
C) three times more capital than labor.
D) none of the answers are correct.
Correct Answer:
Verified
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