Question: A software company in Silicon Valley uses programmers ( labor ) and computers ( capital ) to produce apps for mobile devices. The firm estimates

A software company in Silicon Valley uses programmers (labor) and computers (capital) to produce apps for mobile devices. The firm estimates that when it comes to labor, MPL=5MPL=5 apps per month while PL=$1,000PL=$1,000 per month. And when it comes to capital, MPC=8MPC=8 apps per month while PC=$1,000PC=$1,000 per month. If the company wants to maximize its profits, it should:
multiple choice
increase labor while decreasing capital.
decrease labor while increasing capital.
keep the current amounts of capital and labor just as they are.
none of the above.

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