Suppose the marginal product of capital

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Suppose the marginal product of capital is 16 and the marginal product of labor is 3. If the price of capital is $4 and the wage rate is $3, then in order to minimize costs the firm should use:

more capital and less labor.

more labor and less capital.

three times more capital than labor.

none of the answers are correct.

Reference no: EM13798135

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