Refer to the Information Provided in Figure 10

Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. Figure 10.3
-Refer to Figure 10.3. The market wage is initially W₁ and the firm is initially at Point B. Labor supply increases from S₁ to S₀. The firmʹs MRP_L curve will shift from MRP_L at K₂ to MRP_L at K₁ because

A) the factor substitution effect will cause the firm to substitute capital for the lower-priced labor.
B) the supply of labor increased and therefore the productivity of labor increased.
C) the output effect led to ann increase in the demand for capital, which in turn increased the productivity of labor.
D) the firm is no longer maximizing profits.