A firm employs 320 workers at a wage rate of $40 per hour, and 45 units of capital at a rate of $120 per hour. The marginal product of labor is 2, and the marginal product of capital is 10. Assume that both labor and capital are perfectly divisible.

Which of the following statements is correct?

Group of answer choices

a. The firm could reduce the cost of producing its current output level by employing more capital and less labor.

b. None of the other statements is correct.

c. The firm could reduce the cost of producing its current output level by employing more labor and less capital.

d. The firm is producing its current output level at the minimum cost.