1. The law of diminishing marginal product to capital means that as we add additional units of capital (A) and labor, output will increase but at a constant rate. (B) and labor, output will increase but at a decreasing rate. (C) but hold labor constant, output will increase but at an increasing rate. (D) but hold labor constant, output will increase but at a constant rate. (E) but hold labor constant, output will increase but at a decreasing rate. 2. If MPL > w, the firm: (A) should hire more labor (B) should hire more capital (C) should hire less labor (D) should hire less capital (E) hire some amount of labor and capital to maximize the value of MPL