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The manager at Skip's Pottery knows the marginal product of labor equals 6 and the marginal...

The manager at Skip's Pottery knows the marginal product of labor equals 6 and the marginal product of capital equals 30. Skip will be purchasing one more unit of capital. If the firm wishes to keep the level of output unchanged, then the manager must

Question 22 options:

decrease labor hired by 5 units.

decrease labor hired by 1/5 unit.

increase labor hired by 5 units.

increase labor hired by 1/5 unit.
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MRTS is marginal rate of technical substitution.

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