Asked by
alana fields
on Nov 16, 2024
Verified
A change in the supply of one factor of production
A) can alter the earnings of all of the other factors.
B) alters the earnings of capital and labor but not land.
C) will not change the marginal productivities of other factors but may change their prices.
D) alters the earnings of that factor only.
Factor Of Production
An essential input to the production process, such as labor, capital, land, and entrepreneurship.
Marginal Productivities
The additional output that is produced by using one more unit of a particular input, ceteris paribus.
Earnings Alteration
Changes or modifications to the amount of money earned by an individual or company.
- Appreciate the implications of a particular factor of production's supply on the financial remuneration and productivity levels of other factors.
Verified Answer
AD
Learning Objectives
- Appreciate the implications of a particular factor of production's supply on the financial remuneration and productivity levels of other factors.