6. A software company in Silicon Valley uses programmers

(labour) and computers (capital) to produce apps for mobile devices. The firm estimates that when it comes to labour, MPL = 5 apps per month while PL = $1000 per month. And when it comes to capital, MPC = 8 apps per month while PC = $1000 per month. If the company wants to maximize its profits, it should [LO16.5]

a. Increase labour while decreasing capital

b. Decrease labour while increasing capital

c. Keep the current amounts of capital and labour just as they are

d. None of the above