Matilda is currently using labor and capital (the only two inputs she uses) in the most...

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Economics

Matilda is currently using labor and capital (the only two inputs she uses) in the most economically efficient way possible. All other things the same, if the rental rate of capital decreases, Matilda will want to increase her use of capital and/or decrease her use of labor if she wants to maintain the economic efficiency of her production choice.

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