Firm 3

Gabrielle (Gabi for short) runs a software development firm in "silicon bayou," Shreveport, Louisiana. She employs a number of C++ programmers and Figure RR shows her programmer labor input, on the horizontal axis, and the wage and the value of the marginal product (VMP) of programmer labor on the vertical axis.

Suppose Gabi employs L3 programmers. Then

She is directing her firm efficiently.
Increasing labor input would increase profit.
She should "downsize," since decreasing labor input would increase profit.
She is directing her firm inefficiently.
both c and d above.