Firms will substitute capital for labour:

a. up to the point where their marginal products are equal.

b. whenever possible.

c. up to the point where the marginal products per dollar spent on each are equal.

d. up to the point where the cost of labour is equal to the cost of capital.

e. up to the point of diminishing returns.

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This question is asking about the substitution of capital for labor by firms Lets examine each choice separately a up to the point where their margina... View the full answer