Capital is paid according to the value of its marginal product
A) only if earnings from capital are paid to households in the form of dividends.
B) only if earnings from capital are kept within firms as retained earnings.
C) regardless of whether earnings from capital are paid to households in the form of dividends or whether those earnings are kept within firms as retained earnings.
D) None of the above are correct;capital is a factor of production for which earnings are unrelated to the value of marginal product.
Correct Answer:
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