The cost of output is income to the land,labor,capital and entrepreneurial talent used to produce it.

Question

Quizplus · Accepted Answer

This statement is true as the factors of production, which include land, labor, capital, and entrepreneurial talent, are paid for their contributions to the production process which ultimately results in income for them. The total cost of producing the output is distributed among the factors of production as payments in the form of rent, wages, interest, and profit, respectively.

The Cost of Output Is Income to the Land,labor,capital and Entrepreneurial