The wage rate is $25 per hour and the cost of capital is $50 per hour. At the current output, the firm's MPL is 5 units and MPK is 15 units. In order to maximize profit without changing the production level, the firm should Select one: O A. hire more labour and rent less capital O B. keep its current level of labour and capital inputs. OC. rent more capital and hire less labour O D. hire less labour and rent less capital

The wage rate is $25 per hour and the cost of capital is $50 per hour. At the current output, the firm's MPL is 5 units and MPK is 15 units. In order to maximize profit without changing the production level, the firm should Select one: O A. hire more labour and rent less capital O B. keep its current level of labour and capital inputs. OC. rent more capital and hire less labour O D. hire less labour and rent less capital

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 5P

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