When the aggregrate revenue received by the firms is paid out to the factors of production, it takes the form of _________

Question

Assuming that the production function is homogeneous of degree one and Euler’s equation holds, if MPL (marginal product of labour) is greater than APL (average product of labour), then

Answer 1

The correct option is (C) :Aggregate Income.

When the aggregrate revenue received by the firms is paid out to the factors of production, it takes the form of _________

The Correct Option is C

Solution and Explanation

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