The first-order conditions for maximizing profits, ? = P × F(K, L) - wL ? rK, are:
A. P × {?F(K,L)/?K} - r = 0 and P × {?F(K,L)/?L} - w = 0.
B. VMPK = r and VMPL = w.
C. P × MPK ? r = 0 and P × MPL ? w = 0.
D. All of the answers are correct.
Answer: D
Economics
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