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 capital is $2, then in order to minimize costs the firms should use:
a. More capital and less labor
B. More labor and less capital
c. Three times more capital than labor
d. None of the statements associated with this question are correct
Ans: B. More labor and less capital
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