Chapter 13 - Factor Markets

Marginal analysis

________ is a more direct method of determining the number of workers required to optimize a company's profit.

marginal productivity theory

The term ________ refers to the income distribution about payments to factors when goods markets and factor markets are perfectly competitive.

RCapital

________ is the equilibrium capital rental rate, and QCapital is the equilibrium quantity of capital utilized in production.

marginal revenue

The ________ product curve, and hence the individual firm's demand curves for land and capital, slope downward owing to declining returns, just as they do for labor.

land tax

Although a(n) ________ makes sense in terms of efficiency, there is no agreement on the level of taxes that is fair to landowners.

marginal revenue

The term ________ refers to the product curve of a factor that shows how the ________ product of that factor depends on the quantity of the factor employed.