Your company uses both capital and labor in its production of Horgtoofs, the leading brand of cheese cube slicers. Capital costs $75 per unit and the employee wage is $25 per unit. The last unit of capital added 150 units of output, while the last unit of labor added 75 units of output. Your firm

Select one:

a.could generate more output at the same cost by using less capital and more labor.

b.is using the optimal (or output-minimizing) combination of labor and capital.

c.could produce the same level of output at a lower cost by using less labor and more capital.

d.should use less of both inputs to optimize output.