Bev's Bakery, a Donut Maker, Has Discovered That the Ratio

Multiple Choice

Bev's Bakery, a donut maker, has discovered that the ratio of the marginal product of labor to the price of labor is 6.5, while the ratio of the marginal product of capital to the price of capital is 6.1.The firm has determined that it does not want to change its total costs.Bev's Bakery should:

A) do nothing; the differences in the ratios of marginal product to input price are too small to matter.
B) use more labor and less capital.
C) use more capital and less labor.
D) do nothing different since there is insufficient information upon which to make a decision.