Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $60 and $50, respectively. Resource X can be hired at $80 per unit and resource Y at $90 per unit. 

The firm 

Multiple Choice

should hire more of both X and Y 

should hire more of Y and less of X 

is producing with the least-costly combination of X and Y,but could increase its profits by employing more of X and less of Y 

is using the least-cost combination of X and Y, but could increase its profits by employing less of both X and Y