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Suppose a firm is producing the profit-maximizing level of output and the MP of capital and labor are 10 and 20, respectively. If the wage is $10 and the rental rate for capital is $25, which of the following is true? To minimize costs the firm should
A. Use more capital.
B. Hire more labor and use less capital.
C. Hire less labor and use more capital.
D. Hire less labor.
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