"value of production is equal to factors payments explain ?
Answers
Answered by
2
Answer:
It is the result of the contribution of factors of production and hence is distributed among them as factor payments such as rent wages interest and profits. Thus it is equal to the sum of factor payments. In short:Net value added at FC = Rent + wages + Interest + profits.
please mark me brainliest
Attachments:
Answered by
2
Answer:
In other words it is the cost incurred by the firm on various factors of production. It is the result of the contribution of factors of production and hence is distributed among them as factor payments such as rent wages interest and profits. Thus it is equal to the sum of factor payments.
Similar questions