Capital Is Paid According to the Value of Its Marginal

question 276

Multiple Choice

Capital is paid according to the value of its marginal product

• A) only if earnings from capital are paid to households in the form of dividends.
• B) only if earnings from capital are kept within firms as retained earnings.
• C) regardless of whether earnings from capital are paid to households in the form of dividends or whether those earnings are kept within firms as retained earnings.
• D) None of the above are correct;capital is a factor of production for which earnings are unrelated to the value of marginal product.

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