Solved

If Both Input and Output Markets Are Competitive and Firms

Question 5

Multiple Choice

If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns


A) an amount equal to the price of output times total output.
B) the amount allocated by the political process.
C) an equal share of output.
D) the value of its marginal product.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions