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Select all that apply Letting L1 and K1 denote the optimal values of labor and capital and letting r and w denote, respectively, the prices
Select all that apply 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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Economics Principles and Policy
Authors: William Baumol, Alan Blinder
13th edition
1305280595, 1305280598, 9781305465626 , 978-1305280595
