Hiring additional labor would yield an extra

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Based on data provided - an extra (marginal) $1,000 per month spent hiring additional labor would yield an extra (marginal) 5 apps per month in output. And an additional $1,000 spent on capital would yield an extra 8 apps per month in output. Answer the following: 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.

Reference no: EM131095569

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