For each of the following cases, determine whether the firm should

• Use more labor and less capital, or
• Use more capital and less labor.

NOTE: Answer exactly "Use more labor and less capital" or"Use more capital and less labor."

#26

The marginal rate of technical substitution is 2 (i.e., the marginal product of labor is twice the marginal product of capital) and the input price ratio is 3 (i.e., a unit of labor costs three times as much as a unit of capital)