A firm under perfect competition is in equilibrium when
MC = MR
MC > MR
MR< MC
MC - MR
The supply of labour in an economy at very high real wages
Increases
Decreases
Remains Constant
No change
If supply of a factor is perfectly inelastic the entire earning of the factor is
Quasi Rent
Transfer earning
Rent
Income
If a factor has many close substitutes, its elasticity of demand will be
Zero
High
Low
Constant
According to modern theory rent arises when
Actual earning exceeds transfer earnings
Actual earning equal transfer earnings
Actual earning falls short of transfer earning
Actual earning decreases transfer earnings
The theory of factor pricing is popularly known as
Theory of Distribution
Theory of Consumption
Theory of Supply
Theory of demand
The demand for a factor is
A direct demand
A derived demand
An excess demand
Decreasing demand
The aggregate supply of land area in an economy is
Perfectly elastic
Unity elastic
Perfectly inelastic
Imperfectly elastic
According to the Ricardian theory of rent, the marginal land is one with
No Rent
Low Rent
High Rent
None of these
The wage fund theory is developed by
Ragnar Frisch
J.S. Mill
Keynes
Adam smith
