The marginal productivity theory of distribution holds that
A. each factor is paid what it deserves.
B. the owner of each factor is paid the amount that the factor contributes to earnings.
C. each factor’s income depends on how hard it works.
D. each factor receives an equal share of the revenue from production.
Answer: B
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Conflicts can arise between divisions because
a. Coordination between divisions does not benefit all divisions equally b. managers of profit centers care too little about the effects of their decisions on other divisions c. managers are rewarded only for actions that increase their own divisional profit regardless of their effects on other divisions d. all of the above
A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market
a. True b. False Indicate whether the statement is true or false