A firm operating in a perfectly competitive industry uses two factors of production, X and Y. The table sets out the factor price and the current marginal physical product of these two factors. If the firm sells its product for $1 and intends 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