Q
If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?
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A
A. An amount equal to the price of output times total output
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B
B. The amount allocated by the political process
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C
C. An equal share of output
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D
D. The value of its marginal product
Correct Answer:
D. D. The value of its marginal product