A firm produces output with capital and labour. The production exhibits diminishing MRTS_LK. Suppose that currently the MPL is 33 and MPK is 11. Each unit of labour costs w = $15 and each unit of capital costs r = $10.

1. Therefore, the firm [ Select ] ["is", "is not"] currently minimising its costs of production because:

• a) MRTS_LK = MPL/MPK [ Select ] ["true", "false"]
• b) MPK/r = MPL/w [ Select ] ["true", "false"]
• c) MRTS_LK > MPL/MPK [ Select ] ["true", "false"]
• d) MPK/r < MPL/w [ Select ] ["true", "false"]

2. To minimise the cost of production holding the output constant, the firm should use [ Select ] ["more", "less", "the same amount of"] labour and [ Select ] ["more", "less", "the same amount of"] capital.