What if the price of labour relatively cheaper than capital
What if the price of labour relatively cheaper than capital, for labour is $1 and capital for $1000. Two combination produce save amount of output, one is 10 labour and 10 capital, one is 1000labour and 1 capital. The second one cost the least, Can i say the second one is economically efficient and technologically efficient? If it is economically efficiency then it must be technologically efficient?
We pride ourselves in writing quality essays CLICK HERE TO CONTACT US