CEVAP:

Prices of other Factors of Production: In the short run, we assume the other factors of production cannot be changed. However, if capital or land becomes cheaper relative to labor, in the long run firms may decide to employ more of them and less of labor, and vice versa. It is also possible to compare the methods of production in a developed country where the physical capital is relatively cheaper and a those in a developing country where the labor is relatively cheaper.