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Letting L1 and K1 denote the optimal values of labor and capital and letting r and w denote, respectively, the prices of capital and labor,
Letting L1 and K1 denote the optimal values of labor and capital and letting r and w denote, respectively, the prices of capital and labor, the tangency between an isoquant and an isocost line can be expressed as Multiple select question. MPL1w = MPK1r (MPK1 r) = (MPL1 w) MPL1MPK1 = wr
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Econometric Analysis
Authors: William H. Greene
7th edition
131395386, 131395381, 978-0131395381
