Real GDP is produced in a Cobb-Douglass production function with constant returns to scale using only capital, labor, and total factor productivity. The capital share is 50% and total factor productivity is 4. All markets are perfectly competitive and firms act to maximize profits. If the rental price for capital is $1 per unit of capital, the price is $1 and labor and capital are both equal to 4 then

	Firms want to hire more labor.
	Firms want to hire more capital.
	Firms are already hiring the profit-maximizing amount of capital.
	Firms want to hire less capital.
	We cannot tell what firms will do in this question.