A firm is employing inputs such that the marginal product of labor is 25 and the marginal product of capital is 40. The price of labor is $5, and the price of capital is $8. If the firm wants to minimize costs, then it should

A) use more labor and less capital.
B) use less labor and less capital.
C) use less labor and more capital.
D) make no change in resource use.

Marginal Product

The additional output resulting from a one-unit increase in the use of a variable input, holding all other inputs constant.

Price of Labor

The compensation received by employees for their work, often influenced by factors like skill, industry demand, and geographic location.

Price of Capital

This entails the expenses linked to acquiring and utilizing capital goods, such as machinery, indicating the return investors demand for use of their capital.