The MPP/Price Ratio for Labor Is 25/$5 and the MPP/Price

Multiple Choice

The MPP/Price ratio for labor is 25/$5 and the MPP/Price ratio for capital is 30/$6. A firm that employs both labor and capital will likely

A) buy more labor and less capital because labor is cheaper.
B) buy more capital and less labor because capital is more productive.
C) maintain the current combination of capital and labor.
D) buy more capital and less labor because capital is cheaper.
E) There is not enough information to answer the question.