If Both Input and Output Markets Are Competitive and Firms

question 5

Multiple Choice

If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns

• A) an amount equal to the price of output times total output.
• B) the amount allocated by the political process.
• C) an equal share of output.
• D) the value of its marginal product.

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Definitions:

Spores

Reproductive units in plants, fungi, and some bacteria and protozoans, capable of developing into a new individual without sexual fusion.

Slime Mold

A group of eukaryotic organisms that can live freely as single cells but can aggregate together to form multicellular reproductive structures.

Parasitic Flatworms

A subgroup of flatworms that live in or on other organisms, deriving nutrients at the host's expense without providing any benefit to the host.

Cell Theory

One of the major theories of biology, which states that all organisms are made up of cells; cells are capable of self-reproduction and come only from preexisting cells.