Question: At an interior solution to the long-run cost-minimization problem, the firm adjusts input quantities so that the marginal rate of technical substitution equals the ratio

At an interior solution to the long-run cost-minimization problem, the firm adjusts input quantities so that the marginal rate of technical substitution equals the ratio of the input prices. Equivalently, the ratio of the marginal product of one input to its price equals the corresponding ratio for the other inputs.

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