If a Firm Could Increase Profits by Hiring Less Labor

Multiple Choice

If a firm could increase profits by hiring less labor and more capital, then

A) the last dollar spent on labor must yield a smaller increase in output than the last dollar spent on capital.
B) the last dollar spent on labor must yield a larger increase in output than the last dollar spent on capital.
C) the price of labor exceeds the price of capital.
D) the optimal production technique must be capital intensive.