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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.
Sally earned $25,000 per year before she became a mother. After she became a mother, she told her employer that she would not be willing to work for anything less than $50,000. Her decision is based on
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how should she reallocate her expenditures between the two goods
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find out goods that lie near these extremes. Characterize demands for the following goods as being near perfectly elastic or near perfectly inelastic.
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