When factor prices are given and constant as they are supposed to be to a firm under theoretically perfect competition and factor proportions are variable, you choose that combination of factors in production which equates the relative prices ..
The answer given to the question by the post-war economic theorists who have worked in this field has been based on alternative criteria of policy. I shall take two of these criteria which have figured rather more conspicuously the criteria of..
However, the matter may be put somewhat differently so as to conform to our accepted economic criterion. The economist cannot obviously decide on any issue between objectives. But cost-price considerations are surely within his domain. And in ..