Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 12 - The Demand for Resources - Questions - Page 264: 6b

Answer

Use less labor and more capital

Work Step by Step

in this situation the MRPl is lower than the cost (10 vs 12) and the MRPc is greater ( 14 v 9) so use more capital.
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