In a two-factor perfectly competitive economy, the rectangle under the marginal product curve for labor gives land's share of output.

Name: In a two-factor perfectly competitive economy, the rectangle under the marginal product curve for labor gives land's share of output.
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Question

Quizplus · Accepted Answer

In a two-factor perfectly competitive economy, the rectangle under the marginal product curve for labor actually gives labor's share of output, not land's.

In a Two-Factor Perfectly Competitive Economy, the Rectangle Under the Marginal