You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w $=$ $$40,$ r $=$ $$100,$ MPL $=20,$ and MPK $=40$ the firm:

is cost minimizing.

should use less L and more K to cost minimize.

should use more L and less K to cost minimize.

is profit maximizing but not cost minimizing.