Suppose a Firm Employs Two Inputs, X and Y, and That

Multiple Choice

Suppose a firm employs two inputs, X and Y, and that at their current levels of use MPX/PX >
MPY/PY. To minimize the cost of production, the firm should hire

A) more input Y only if its price falls.
B) more input Y and less input X.
C) more input X only if its price decreases.
D) more input X only if its price increases.
E) more input X and less input Y.