Multiple Choice
Which of the following is not correct?
A) Earnings from capital may be paid to households in the form of dividends.
B) Earnings from capital may be retained by firms to purchase additional capital.
C) Firms may not pay out all of their earnings to households.
D) Firms earn the highest profits when the owners of capital receive a value above the marginal product.
Correct Answer:
Verified
Correct Answer:
Verified
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