Suppose That Capital Costs $10 Per Unit and Labour Costs

Multiple Choice

Suppose that capital costs $10 per unit and labour costs $4 per unit. If the marginal product of capital is 50 and the marginal product of labour is 50, the firm should in order to minimize its costs of producing its output.

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