A Firm Is Employing Inputs Such That the Marginal Product

Multiple Choice

A firm is employing inputs such that the marginal product of labor is 25 and the marginal product of capital is 40. The price of labor is $5, and the price of capital is $8. If the firm wants to minimize costs, then it should

A) use more labor and less capital.
B) use less labor and less capital.
C) use less labor and more capital.
D) make no change in resource use.