{"id":53173,"date":"2024-04-15T23:50:09","date_gmt":"2024-04-15T23:50:09","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=53173"},"modified":"2024-04-15T23:50:09","modified_gmt":"2024-04-15T23:50:09","slug":"every-factor-of-production-gets-rewarded-equal-to-its","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/","title":{"rendered":"Every factor of production gets rewarded equal to its"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Cost&#8221; option2=&#8221;Marginal product&#8221; option3=&#8221;Price&#8221; option4=&#8221;Increasing return&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>B. Marginal product.<\/strong><\/p>\n<p>Marginal product is the additional output that a firm produces when it increases the use of one factor of production by one unit, while holding all other factors constant. In a competitive market, the price of a factor of production will be equal to its marginal product. This is because firms will only hire factors of production up to the point where the marginal revenue product (MRP) is equal to the wage rate. The MRP is the additional revenue that a firm generates when it increases the use of one factor of production by one unit.<\/p>\n<p>The other options are incorrect because:<\/p>\n<ul>\n<li><strong>Cost<\/strong> is the total amount of money that a firm spends on inputs. It includes the cost of labor, capital, land, and other inputs.<\/li>\n<li><strong>Price<\/strong> is the amount of money that a firm charges for its output.<\/li>\n<li><strong>Increasing return<\/strong> is a situation in which a firm&#8217;s output increases by more than the amount of inputs that it uses. This can happen when there are economies of scale.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Cost&#8221; option2=&#8221;Marginal product&#8221; option3=&#8221;Price&#8221; option4=&#8221;Increasing return&#8221; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-53173","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Every factor of production gets rewarded equal to its<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Every factor of production gets rewarded equal to its\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Cost&#8221; option2=&#8221;Marginal product&#8221; option3=&#8221;Price&#8221; option4=&#8221;Increasing return&#8221; correct=&#8221;option2&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:50:09+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Every factor of production gets rewarded equal to its","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/","og_locale":"en_US","og_type":"article","og_title":"Every factor of production gets rewarded equal to its","og_description":"[amp_mcq option1=&#8221;Cost&#8221; option2=&#8221;Marginal product&#8221; option3=&#8221;Price&#8221; option4=&#8221;Increasing return&#8221; correct=&#8221;option2&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T23:50:09+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/","url":"https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/","name":"Every factor of production gets rewarded equal to its","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T23:50:09+00:00","dateModified":"2024-04-15T23:50:09+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/every-factor-of-production-gets-rewarded-equal-to-its\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Economics","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/economics\/"},{"@type":"ListItem","position":4,"name":"Every factor of production gets rewarded equal to its"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/53173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=53173"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/53173\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=53173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=53173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=53173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}