Q183
Every factor of production gets rewarded equal to its
A.
Cost
B.
Marginal product
AnswerC.
Price
D.
Increasing return
Answer: Option B
Solution
Answer: Option B
Solution:
Every factor of production gets rewarded equal to its Marginal product. No single firm can influence the market price of a factor of production. Therefore, in order to get the equilibrium position, a firm will employ labourers up to a point where their respective marginal revenue productivity is equal to their wage rate.