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) labor and land.
E) capital and labor.
Correct Answer:
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