If a firm is a monopsonist in the hiring of both labor and capital, it will obtain the profit- maximizing quantities of labor and capital when:
A. MRP L /P L = MRP C /P C = 1.
B. MRP L /MRC L = MRP C /MRC C = 1.
C. the MRP of labor equals the MRP of capital.
D. the MRC of labor equals the MRC of capital.
Answer: B
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