The Largest Component of Factor Income in the U

question 159

Multiple Choice

The largest component of factor income in the U.S. is:

• A) rental income.
• B) profits.
• C) employee compensation.
• D) consumption.

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Definitions:

Profit-Maximizing Firms

Companies that operate with the goal of making the highest possible profit from their activities.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Downward-Sloping Demand

A concept in economics that illustrates how demand for a good or service decreases as the price increases, assuming all other factors remain constant.

Monopoly

A monopoly is a market structure characterized by a single seller dominating the market, facing no competition, which can influence prices and control the supply of goods or services.