The Marginal Productivity Theory of Income Distribution Says That

question 154

Multiple Choice

The marginal productivity theory of income distribution says that:

• A)each factor is paid the equilibrium value of the output generated by the last unit of that factor employed in the factor market as a whole.
• B)each factor is paid an amount greater than the value of the output generated by the last unit of that factor employed in the factor market as a whole.
• C)each factor is paid an amount less than the value of the output generated by the last unit of that factor employed in the factor market as a whole.
• D)the payment to each factor does not correspond to the marginal product of the factor.

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