If MPa / Pa = MPb / Pb and MRPa

Multiple Choice

If MPa / Pa = MPb / Pb and MRPa / Pa = MRPb / Pb > 1, this firm is

A) producing its output with the least costly combination of resources but is not producing the profit-maximizing output.
B) maximizing profits but failing to minimize costs.
C) neither maximizing profits nor minimizing costs.
D) combining resources a and b so as to minimize costs and maximize profits.16-30