# If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ? Correct Answer: D. the value of its marginal product. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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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 ?

Direct Answer & Quick Reference

The correct option is **D. the value of its marginal product**.

A. an amount equal to the price of output times total output

B. the amount allocated by the political process

C. an equal share of output

D. the value of its marginal product **(Correct Answer)**

✨ Explain with AI

Verified Key: D. the value of its marginal product
Solved by 4,435+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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