A firms current MRTSLK (in absolute value) is 1.6. Its input prices are PL = 4 and

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Question:

A firm’s current MRTSLK (in absolute value) is 1.6. It’s input prices are PL = 4 and PK = 6. Based upon this information, to reduce its costs the firm’s best option among those listed below is to?: A.Increase L and decrease K. B.Increase K and decrease L. C.Leave L and K unchanged. D.Increase L and increase K. E.Decrease L and decrease K.