Explain what the firm ought to do

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A firm purchases capital and labor in competitive markets at prices of r = 16 and w = 24, respectively. With the firm's current input mix, the marginal product of capital is 72 and the marginal product of labor is 48. Is this firm minimizing its costs? If so, explain how you know. If not, explain what the firm ought to do (use a graph and explain briefly).

Reference no: EM13212090

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