Course: Microeconomic - Cost Function

Lucho, owner of a bakery, states: "after an exhaustive analysis of the production chain, I came to the conclusion that, at the margin, labor produces twice as much as capital and this ratio is maintained no matter how much bread we produce". His son, who manages the bakery, replies: "Therefore, we are minimizing our costs, since wages are $300,000 and capital has a cost of $150,000.Explain