Question
Explain why, at an interior optimal solution to the firm's costminimization problem, the additional output that the firm gets from a dollar spent on labor
Explain why, at an interior optimal solution to the firm's costminimization problem, the additional output that the firm gets from a dollar spent on labor equals the additional output from a dollar spent on capital. Why would this condition not necessarily hold at a corner point optimal solution?
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Understanding Globalization The Social Consequences Of Political, Economic, And Environmental Change
Authors: Robert K Schaeffer
4th Edition
0742561801, 9780742561809
