Suppose That Capital Costs $50 Per Unit and Labour Costs

Multiple Choice

Suppose that capital costs $50 per unit and labour costs $20 per unit. If the marginal product of capital is 100 and the marginal product of labour is 30, a cost- minimizing firm should

A) employ more capital and less labour.
B) employ less of both capital and labour.
C) employ more of both capital and labour.
D) not change its current factor use.
E) employ less capital and more labour.