In the context of resource allocation for profit maximization, the principle states that firms should allocate resources so that the ratio of the ______ of labor to its wage equals the ratio of the ______ of capital to its price.

In the context of resource allocation for profit maximization, firms should allocate resources so that the ratio of the marginal product of labor to its wage equals the ratio of the marginal product of capital to its price. This means that the additional output gained from hiring one more worker should be compared to how much that worker costs. For example, if hiring an extra worker gives a company an additional 100 units of output and costs $50 in wages, the ratio is 100/50, which equals 2. Similarly, if an extra machine gives 200 units of output and costs $100, the ratio is 200/100, also equaling 2. When these ratios are equal, the firm is using its resources efficiently to maximize profit.