A firm operating in a perfectly competitive industry uses two factors of production, X and Y. The table gives the factor price and the present marginal physical product of these two factors. If the firm sells its product for $1 and wants to maximise profits, what should it do?
- Aemploy less of both X and Y
- Bemploy less of X and more of Y
- Cemploy more of both X and Y
- Demploy more of X and less of Y