A firm's marginal product of labor is 4 and its marginal product of capital is 5. If the firm adds one unit of labor, but does not want its output quantity to change, the firm should:

A) use five fewer units of capital.
B) use 0.8 fewer units of capital.
C) use 1.25 fewer units of capital.
D) add 1.25 units of capital.

Marginal Product

The extra output or benefit produced by using one more unit of a given input, such as labor or capital.

Labor

The effort by humans to produce goods or services in the economy. It is often considered one of the key factors of production alongside land and capital.

Capital

Refers to financial resources, assets, or funds a company or individual possesses for pursuing investment opportunities or operational activities.