When labor costs rise compared to capital costs and more equipment is engaged as more of a result, economic result of increase of the rise in prices outweighs its opportunity cost. This claim is untrue.
The downward-sloping MRP graph for workers depicts the connection among rates of pay and the amount of labor that is needed.
Demand for the commodity or service that a material contributes to is what determines how much of it is in demand.
Assume that despite a doubling in the cost of capital, firms continue to use the same proportions of workers and employers. This suggests that property and labor are not easily interchangeable.
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