Kizspy | Question: 8
(Choose 1 answer)
Capital is paid according to the value of its marginal product
A. only if earnings from capital are paid to households in the form of dividends
B. regardless of whether earnings from capital are paid to households in the form of dividends or whether those earnings are kept within firms as retained earnings
C. only if earnings from capital are kept within firms as retained earnings
D. None of the above is correct; unlike labor, capital is a factor of production for which earnings are unrelated to the value of marginal product
