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

Related Mcqs:

The most important factors of production are ?

A. labor, land, and capital B. water, earth and knowledge C. money, stocks and bonds. D. management finance and marketing...

Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ?

A. Wages rise, and rental rates fall B. Wages rise, and rental rates rise C. Wages fall, and rental rates rise D. Wages fall, and rental rates fall...

If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?

A. cause a reduction is output B. have no effect on output C. increase the marginal product of the factor D. generate ever smaller amounts of output...

For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm’s ?

A. supply curve of capital B. demand curve for capital C. production function D. marginal cost curve...

What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?

A. increase the demand for fishing boats and decrease rental rates on fishing boats B. decreases the demand for fishing boats and increase rental rates on fishing boats. C. decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry D. increase the demand for fishing boats … What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?Read More...