In the long run, which of the following statements is false?

Question

Quizplus · Accepted Answer

In the long run, it is not necessarily true that the marginal product of labor (MPL) equals the marginal product of capital (MPK). The equality of MPL and MPK depends on the production function and the allocation of resources, not on the long-run equilibrium condition itself. The other statements relate to conditions for profit maximization and the equality of factor prices to their respective marginal products, which are characteristic of long-run equilibrium in competitive markets.

In the Long Run, Which of the Following Statements Is