What if the price of labour relatively cheaper than capital
QUESTION
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?
ANSWER:
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.