Cost minimizing combination of labor and capital

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The company you work for hires labor and capital in competitive factor markets. Currently the wage rate is $10 per hour and capital is rented at $21 per hour , if the marginal product of labor is 30 units of output per hour and the marginal product of capital is 5 units per hour , is your company using the cost minimizing combination of labor and capital? If not, should the firm increase or decrease the amount of capital used in its production process?

Reference no: EM132235609

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