I am stuck and confused by a section of what I read in my textbook, could you please help me understand the paragraph?
If you only vary one means of production and the market for it is competitive you should employ as many units of that means of production as you need to make its Marginal product equal its per-unit cost
1) The Wage (in terms of good we produce) is ω = w/px which is the nominal wage (W) divided by the price of the good and it must be the same as the marginal product of Labour for any given level of capital, which means that Money Value of the Marginal Product equals the nominal wage
My confusion stems from how can wage equal wage/price? That seems illogical to me!
Moreover, what does it mean by equals nominal wage? My understanding of Market for Factors was, you hire labour as long as the last labour output is higher than your costs, but I get confused by the term nominal.