producer is hiring 20 units of labor and 6 units of capital (bundle A).The price of labor is $10,the price of capital is $2,and at A,the marginal products of labor and capital are both equal to 20.Beginning at A,if the producer increases expenditures on labor by $1 and decreases expenditures on capital by $1,then

September 22, 2022 by 8i9x6

cost remains constant and output decreases by 8 units. cost remains constant and output increases by 12 units. cost remains constant and output increases by 20 units. output remains constant and cost increases by $8. output remains constant and cost decreases by $2.

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cost remains constant and output decreases by 8 units.

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