Consider a production function with two inputs: domestic labor (E_dom) and foreign labor (E_for.)The market is originally in equilibrium as shown below, and that the production budget is fixed.Suppose a shock occurs that increases the marginal product of foreign labor.Assuming no changes in domestic or foreign wages, what will happen to the quantities of domestic and foreign labor employed?

Initial long run equilibrium (prior to shock):

MPdom / wdom = MPfor / wfor

a. The firm will hire more domestic workers and fewer foreign workers

b. The firm will hire more domestic workers, but will continue to hire the same number of foreign workers

c. The firm will hire more foreign workers and fewer domestic workers

d. The firm will hire more foreign workers, but will continue to hire the same number of domestic workers