Mathematics formulae test
it is possible to calculate the Standard commodity associated to this technique, denoted by
.
If we want to compare technique with another technique, say
, 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
, which can be denoted by
, and the relation between the rate of profit and the wage rate associated to technique
still expressed in terms of
, which can be denoted by
.
As we know, is linear but
is not linear, because bundle
is not an invariant standard of value with technique
. Relations
and
may thus intersect more than one time, making ambiguous the order of technique with respect to their capital intensities.