A company uses raw materials (M) and energy (E) to produce its product. The marginal product of raw materials MPM = 65 and the marginal product of capital MPg = 40. For each set of per-unit prices of labor and capital given below, determine whether the company is minimizing its total cost. If it is not, determine the direction of factor substitution the firm should make in order to do so. 2.1 P = $11 and Pg = $19 2.2 PM = $28 and Pg = $10

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