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If the fraction numerator M P L over denominator w end fraction greater than space fraction numerator M P K over denominator r end fraction,
If the fraction numerator M P L over denominator w end fraction greater than space fraction numerator M P K over denominator r end fraction, the cost-minimizing, profit-maximizing, firm has an economic incentive to hire less of the labour (L) input, and more of the capital (K) input to produce a given level of output (Q)
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Microeconomics Theory And Applications With Calculus
Authors: Jeffrey M. Perloff
4th Edition
134167384, 134167381, 978-0134167381
