Dollar spent on capital generated

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Reference no: EM13833136

If the last dollar spent on capital generated $1.05 in return while the last dollar spent on labor generated $0.99 in return, then in the long-run the firm should

A. reduce its spending on labor and increase its spending on capital

B. reduce its spending on capital and increase its spending on labor

C. continue to use the current combination of labor and capital

Reference no: EM13833136

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