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Microeconomics II
book

Microeconomics II

by D.N. Dwivedi
August 2011
Intermediate to advanced content levelIntermediate to advanced
368 pages
14h 51m
English
Pearson India
Content preview from Microeconomics II
Product Exhaustion Theorem 257
Since n
.
LACH = ONAL,
2
by substituting, we can write Eq. (12.11) as
MP NMA ONAL ONAL n ABC
NMA n ABC
k
= + +
= +
( )
( )
(12.12)
Consider the last term, n(ABC). As n, the share of each rm in the given supply of labour tends to
be zero. erefore, the last term n(ABC) → 0. Consequently,
MP
k
= NMA = capital income
It is the same residual as calculated earlier to show the capital income of each rm employing OL
number of labour. us, Clark–Wicksteed–Walras theorem is proved.
CHANGE IN RELATIVE FACTOR SHARES AND INCOME
DISTRIBUTION
In this section, we discuss how a change in relative factor prices aects the relat ...
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Publisher Resources

ISBN: 9788131797655