Suppose the marginal product of labor

Reference no: EM13688820

Suppose the marginal product of labor is 8 and the marginal product of capital is 2. If the wage rate is $4 and the price of capital is $2, then in order to minimize costs the firm should use

three times more capital than labor.

none of the answers are correct.

more capital and less labor.

more labor and less capital.

Reference no: EM13688820

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