Assuming that w and r are both positive, if the long-run expansion path is horizontal, then
A)MPK = 0.
B)MRTS is a function of capital only.
C)w = r.
D)All of the above.
Let's find answer to your question.
Assuming that w and r are both positive, if the long-run expansion path is horizontal, then
A)MPK = 0.
B)MRTS is a function of capital only.
C)w = r.
D)All of the above.