A Firm Is Producing 1,000 Units of Output with 40

Short Answer

A firm is producing 1,000 units of output with 40 units of labor and 30 units of capital. The marginal product of the last units of labor and capital are, respectively, MP_L = 60 and MP_K = 120. The prices of labor and capital are, respectively, w = 30 and r = 40.
-At the combination of inputs the MRTS is __________________ (greater than, less than, equal to) the input price ratio, w/r.