At an interior solution to the long-run cost-minimization problem, the firm adjusts input quantities so that the
Question:
At an interior solution to the long-run cost-minimization problem, the firm adjusts input quantities so that the marginal rate of technical substitution equals the ratio of the input prices. Equivalently, the ratio of the marginal product of one input to its price equals the corresponding ratio for the other inputs.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: