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, MPLMPL apps per month while PL$PL$ per month. And when it comes to capital, MPCMPC apps per month while PC$PC$ 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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