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Based on data provided - an extra (marginal) $1,000 per month spent hiring additional labor would yield an extra (marginal) 5 apps per month in output. And an additional $1,000 spent on capital would yield an extra 8 apps per month in output. Answer the following: If the company wants to maximize its profits, it should: a. Increase labor while decreasing capital. b. Decrease labor while increasing capital. c. Keep the current amounts of capital and labor just as they are. d. None of the above.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91838245

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