Question

is there a relation between equilibrium and mps? if yes what is it?​

Answer 1

Answer:

The marginal decision rule says that a firm will shift spending among factors of production as long as the marginal benefit of such a shift exceeds the marginal cost. ... The equilibrium – the point at which the firm is producing the maximum amount of output at a given cost – occurs where MPL/PL=MPK/PK.

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