For efficient allocation of resources ________ and ________ must be equal across firms.
A) the marginal product of capital; the marginal product of labor
B) nominal wages; real wages
C) the capital stock; the labor stock
D) unemployment must be equal to its natural rate; wages
E) net exports should be zero; the marginal product of capital

Question

Quizplus · Accepted Answer

For efficient allocation of resources, the marginal product of capital (the additional output produced by an additional unit of capital) and the marginal product of labor (the additional output produced by an additional unit of labor) must be equal across firms. This ensures that firms are using their resources, including capital and labor, in the most productive way, maximizing output and minimizing costs.

For Efficient Allocation of Resources ________ and ________ Must Be

For Efficient Allocation of Resources and Must Be