Production Factors

An increase in the demand for a firm’s output ?

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An increase in the demand for a firm’s output ?

A. decrease the prosperity of the firm but increases the prosperity of the factors hired by the firm
B. decreases the prosperity of both the firms and the factors hired by the firm.
C. increases the prosperity of both the firm and the factors hired by the firm.
D. increases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.

If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?

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If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?

A. an amount equal to the price of output times total output
B. the amount allocated by the political process
C. an equal of output
D. the value of its marginal product

A decrease in the demand or fish ?

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A decrease in the demand or fish ?

A. decrease the value of the marginal product of fishermen reduces their wage, and reduces employment in the fishing industry
B. increase the value of the marginal product of fishermen increase their wage, and increase employment in the fishing industry.
C. decrease the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
D. increase the value of the marginal product of fishermen increase their wage and decreases employment in the fishing industry