Grace's Mushroom Farm produces 1000 pounds of mushrooms per day. At its current use of inputs, the MP (marginal product of capital is 10 pounds, and the MP of labor is 20 pounds. An hour of capital costs $15, and an hour of labor costs $20. If the company wants to continue producing its current level of output, while minimizing its cost, which of the following should it do?
Use more labor and less capital.
Use more capital and less labor.
Use less of both Inputs.
Keep both inputs at their current level.