Assuming that all firms maximize profits, economic profit is zero if:
A) all factors are paid their marginal products and the law of diminishing returns is valid.
B) all factors are paid their marginal products, and there are constant returns to scale.
C) no firms are competitive.
D) all factors are paid their marginal products.
Correct Answer:
Verified
Q18: The marginal product of labour is:
A)output divided
Q19: The assumption that the factor's supply is
Q20: A competitive, profit-maximizing firm hires labour until
Q21: According to a recent report from the
Q22: Since 1960, the Canadian ratio of labour
Q24: What determines the ratio of the wage
Q25: With a Cobb-Douglas production function, the share
Q26: The real rental price of capital is
Q27: The real wage will increase if:
A)the supply
Q30: The neoclassical theory of distribution explains the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents