The prices paid to a productive resource usually perform an incentive function except with what resource?

Name: The prices paid to a productive resource usually perform an incentive function except with what resource?
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

Prices paid to land, such as rent, do not typically serve an incentive function because the supply of land is fixed and does not respond to price incentives in the same way as labor, capital, or entrepreneurial ability, which can be influenced by changes in their respective rewards.

The Prices Paid to a Productive Resource Usually Perform an Incentive