Suppose a Firm Employs Two Kinds of Inputs, Capital at $100

Multiple Choice

Suppose a firm employs two kinds of inputs, capital at $100 per unit, and labour at $25 per unit. If the marginal product of capital is 50, then the firm should in order to minimize its production costs.

A) not change its current factor use
B) employ more labour and more capital
C) employ more labour and less capital
D) employ more capital and less labour
E) There is insufficient information to make a recommendation.