Assume a pencil manufacturer is employing resources C and D in such quantities that the MRPs of the last units hired are $80 and $50 respectively. The price of resource C is $90 and the price of D is $35. This firm:
A. should hire less of C and more of D.
B. should hire more of both C and D.
C. should hire less of both C and D.
D. is using the least-cost combination of C and D.
Answer: A
Economics
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