A software company in Silicon Valley uses programmers (labor) and computers (capital) to p
A software company in Silicon Valley uses programmers (labor) and computers (capital) to produce apps for mobile devices. The firm estimates that when it comes to labor, MPL = 5 apps per month while PL = $1,000 per month. And when it comes to capital, MPC = 8 apps per month while PC = $1,000 per month. If the company wants to maximize its profits, it should:
a. Increase labor while decreasing capital.
b. Decrease labor while increasing capital.
c. Keep the current amounts of capital and labor just as they are.
d. None of the above.