1 a firms marginal rate of technical substitution at m p
1) A firm's marginal rate of technical substitution at
M P L/M P = 3, and the ratio of prices of labor and capital ,w/r, is 4.
a) Is the firm minimizing its cost? Why or Why not?
b) What can it do to improve its situation?
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1 a firms marginal rate of technical substitution atm p lm p 3 and the ratio of prices of labor and capital wr is 4a
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