If MPP?/P? MP $\mathrm { P } _ { \mathrm { B } }$ / $\mathrm { P } _ { \mathrm { B } }$ , then the proportions of these two inputs is optimal.

Question

If MPP?/P? > MP $\mathrm { P } _ { \mathrm { B } }$ / $\mathrm { P } _ { \mathrm { B } }$ , then the proportions of these two inputs is optimal.

Quizplus · Accepted Answer

The inequality suggests that the marginal product per price of input A is greater than that of input B, indicating that the proportions of these two inputs are not optimal. Optimal proportions occur when the ratios are equal.

If MPP?/P? > MP PB\mathrm { P } _ { \mathrm { B } }PB​

If MPP?/P? > MP $\mathrm { P } _ { \mathrm { B } }$