Question

Factor pricing under perfect competition

Answer 1

The Determination of Factor Prices under Perfect Competition! According to the neo-classical theory, under conditions of perfect competition in the factor and product markets, it is both demand for and supply of factors which determine their prices.

Answer 2

The Determination of Factor Prices under Perfect Competition! According to the neo-classical theory, underconditions of perfect competition in the factor and product markets, it is both demand for and supply of factorswhich determine their prices.