A competitive, profit-maximizing firm uses two inputs labor (L) and capital (K). Its production function is given byf(L, K) = 3L 1'2 + 7K1\". Its output sells for $4 per unit. The price of labor is $6 per hour. The price of output rises to $8 per unit but factor prices do not change. (a) It will increase its hiring of labor by 4 hours. (b) It will increase its hiring of labor by 2 hours. (c) We need to know the price of capital to be able to determine the change in demand for labor. (d) It will increase its hiring of labor by 3 hours. (e) None of the above