Current production mix the marginal product of capital

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Daniel makes ice cream. He currently produces 22,000 ounces of ice cream a month using 200 units of capital and 300 hours of labor. With his current production mix the marginal product of capital is 600 ounces and the marginal product of labor is 350 ounces of ice cream. The price of labor is $10 per hour and the price of capital is $20 per unit. Daniel wants to keep costs the same but he wants to make sure that he is maximizing output. He should

A. use less labor and more capital.

B. use more labor and less capital.

C. use less labor only, since it is not very productive.

D. use more capital only, since it is more productive.

E. do nothing, his output is maximized already.

Reference no: EM13997125

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