Factors of production receive compensation that is specific to the role they perform. Match the factor of production with the compensation. Factor Compensation i. Land 1. A price searcher refers to an aggressive shopper. The following is true in equilibrium for all firms selling goods and services in a market economy.
Profit is equal to zero.
At equilibrium output the firm is producing as much as it is capable of producing. Externalities lead to a market solution in which resources are not allocated according to their best use. Externalities often exist when property rights are poorly or incompletely defined. Externalities result in a quantity produced that is not the optimal quantity. Cartels can be successful or unsuccessful.