Mathematics formulae test

$delim{[}{A_{alpha}/{l_alpha}^T}{]}$ it is possible to calculate the Standard commodity associated to this technique, denoted by ${y_alpha}^*$ .

If we want to compare technique alpha with another technique, say beta , we must draw on the same graph the relation between the rate of profit and the wage rate associated to technique α expressed in terms of ${y_alpha}^'$ , which can be denoted by ${omega^alpha}_{{y_alpha}^'} (r)$ , and the relation between the rate of profit and the wage rate associated to technique beta still expressed in terms of ${y_alpha}^'$ , which can be denoted by ${omega{^beta}}_{{y_alpha}^'} (r)$ .

As we know, ${omega{^alpha}}_{{y_alpha}^'} (r)$ is linear but ${omega{^beta}}_{{y_alpha}^'} (r)$ is not linear, because bundle ${y_alpha}^'$ is not an invariant standard of value with technique beta . Relations ${omega{^alpha}}_{{y_alpha}^'} (r)$ and ${omega{^beta}}_{{y_alpha}^'} (r)$ may thus intersect more than one time, making ambiguous the order of technique with respect to their capital intensities.

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Mathematics formulae test

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