Within a perfectly competitive industry, a firm uses two factors of production, X and Y. The table gives the factor price and the present marginal physical product for these two factors. factor X factor Y factor price $2.50 $6.00 marginal physical product 2 8 If the firm sells its output at $1 and wants to maximise profits, what action should it take?
- 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