Optimal input poportions the firm


If the MPP of labor is 60 and the price of labor per period is $20,the MPP of machinery is 75 and the price of the machinery per period is $25, in order to achieve optimal input poportions the firm should use

a) more labor with the same amount of machinery

b) the current combination

c) more machinery and less labor

d) more labor and less machinery

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Macroeconomics: Optimal input poportions the firm
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