According to Euler's Theorem, If Competitive Firms Pay Each Factor

question 63

Multiple Choice

According to Euler's theorem, if competitive firms pay each factor its marginal product and the production function has constant returns to scale, the sum of all factor payments will equal:

• A) total investment.
• B) total saving.
• C) total profits.
• D) total output.

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Definitions:

Cultural-Transmission

The process by which culture, including knowledge, customs, and values, is passed down from one generation to the next.

Deviance

Behaviors or actions that violate societal norms or expectations, which can range from minor to serious offenses, eliciting social reactions.

Strain

Refers to breakdowns in traditional norms that precede collective action.

Capital Punishment

A legal process where the state executes someone as punishment for a crime.