Suppose that capital costs $6 per unit and labour costs $3 per unit. If the marginal product of capital is 12 and the marginal product of labour is 6, the cost- minimizing firm should
A) employ more capital and less labour.
B) employ less of both capital and labour.
C) employ more of both capital and labour.
D) employ less capital and more labour.
E) not change its current factor use.

Question

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The Answer of Suppose that capital costs $6 per unit and labour costs $3 per unit. If the marginal product of capital is 12 and the marginal product of labour is 6, the cost- minimizing firm should
A) employ more capital and less labour.
B) employ less of both capital and labour.
C) employ more of both capital and labour.
D) employ less capital and more labour.
E) not change its current factor use.

Suppose That Capital Costs $6 Per Unit and Labour Costs