Explain why in the long run a firm that is cost minimizing will choose K and L where:
w/MP_L = r/MP_K
What does this tell you about the marginal cost of increasing output through hiring labor and the marginal cost of increasing output through adding capital?

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The Answer of Explain why in the long run a firm that is cost minimizing will choose K and L where: w/MP_L = r/MP_K What does this tell you about the marginal cost of increasing output through hiring labor and the marginal cost of increasing output through adding capital?

Explain Why in the Long Run a Firm That Is