Test $2($Chapters $5-7)$ i

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$20$ You are the manager of University Lube, a manufacturing firm that uses $K$ and $L$ as inputs. The firm produces and sells a given output. If $w=$ $$30,r=$$$10,M{P}_L=10,$ and $M{P}_K=20,$ then according to you the firm

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is efficient as it is cost minimizing.

should use less $L$ and more $K$ to cost minimize.

should use more $L$ and less $K$ to cost minimize.