[Economics] If for a firm MRP > MFC, then the firm?

Question

Please help me out with my HW!

If for a firm MRP > MFC, then the firm

A. is maximizing profits and should continue producing its current output.

B. is minimizing factor costs and therefore is maximizing profits.

C. should produce more output by increasing the quantity of factors employed.

D. should produce less output by decreasing the quantity of factors employed.

thanks!

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Answer 1

C. should produce more output by increasing the quantity of factors employed.

It should hire factors till MRP=MFC or closest possible combination MRP≥MFC