If input and output markets are competitive and firms maximise profit, what does each factor of production earn in equilibrium?

1. A Option A: The value of its marginal product
2. B Option B: The amount allocated by the political process
3. C Option C: An equal share of output
4. D Option D: An amount equal to the price of output times total output

Answer checked 11 October 2026 · How we write and check questions