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Q. a manager hires labour also rents capital equipment in a very competitive market. Currently the wage rate i $6 per hour also capital is rented at $12 per hour. If the marginal product of labour is 50 units of output per hour also the marginal product of capital is 75 units of output per hour, is the organization using the cost-minimizing combination of labour also capital? If not, should the organization increase or decrease the amount of capital used in its production process?
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