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Distribution of Output

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Distribution of Output

The distribution of output depends largely on the distribution of income in a market. The basic principle is that if you make more money then you end up buying more because you can afford to make purchases. Income distribution depends on the quantity of goods or services the human resource supplies. The resource price of human labor, otherwise known as wages or profit, determines a person’s ability to buy output. The price of labor is worth exactly what the buyer, contractor or employer is willing to pay for the labor. To determine who gets the distribution of output depends on the willingness of a consumer to pay its existing market price. Factors such as price of the good, preference and cost of other goods also determine output distribution. You can generate income by selling factors of production. This could include human resources such as labor, produce a good or service or sell an asset such as equipment or building. You can figure this out using the equation Pr * Qr = Income. With Pr meaning the Price of the Resource and Qr meaning Quantity of the resource. The price of the resource is dependent on supply and demand of the resource in the market. The distribution of output is dependent on the distribution of income. A market sets the price of a good and if a buyer is willing to purchase good then the seller produces income. Which then can be used to obtain more output in…...

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