Suppose That the Production of Wheat Requires Two Inputs, Labor

Multiple Choice

Suppose that the production of wheat requires two inputs, labor and fertilizer. The price of labor is $4.50, and the price of fertilizer is $3.00. A farmer is currently employing the inputs such that the marginal product of labor is 11 and the marginal product of fertilizer is 8. If the farmer is a cost-minimizer, he should

A) use more labor and less fertilizer.
B) use more fertilizer and less labor.
C) use more labor and more fertilizer.
D) continue using the same amounts of each input.