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:

Frequency

In various contexts, it refers to the rate at which something occurs or is repeated over a particular period of time.

Negative Reinforcement

A behavioral principle where the removal of an undesirable or unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated in the future.

Unwanted Behavior

Actions or conduct that are not desired or are deemed inappropriate by others, often addressed in behavioral interventions.

Desired Behavior

A specific type of behavior that is considered preferable or sought after in a given context.