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Every factor of production gets rewarded equal to its

This question belongs to Commerce Economics
Economics
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Every factor of production gets rewarded equal to its

Answer & Solution
Correct Answer: Option B
Every factor of production gets rewarded equal to its Marginal product. No single firm can influence the market price of a factor of production. Therefore, in order to get the equilibrium position, a firm will employ labourers up to a point where their respective marginal revenue productivity is equal to their wage rate.
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