CSS :: Pricing Factors

@ : Home > Economics > Pricing Factors

Every factor of production gets reward equal to:

A.	Value of average product	B.	Value of marginal product
C.	Value of total product	D.	Total revenue

Under perfect competition, demand for a factor is its:

A.	MRP curve	B.	ARP curve
C.	TRP curve	D.	TR - TC

We should employ units of a factor to a point where:

A.	MR is negative	B.	MP is equal to price of the factor
C.	MP is positive	D.	MP is rising

If marginal product of labour rises because of new technology:

A.	Wages will rise	B.	Wages will fall
C.	Wages will be unaffected	D.	May rise or fall

One of the following is NOT a assumption of the marginal productivity theory:

A.	Units of factor are homogeneous	B.	Mobility of factor
C.	Low price of factor	D.	Perfect competition

Increasing the minimum wage for workers will:

A.	Sole the unemployment problem	B.	Result in scarcity of workers
C.	Cause a substitution of capital for labour	D.	Decrease the MP of those workers