Multiple Choice

A manufacturing firm has a total budget of $1,000 to spend on labor and capital. The hourly wage for labor is $20, and the rental price per unit of capital is $50. If the firm reduces its planned labor usage from 25 hours to 20 hours, how many units of capital can it now afford to use while keeping the total cost exactly at $1,000?

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Updated 2025-09-24

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