According to the Marginal Productivity Theory of Income Distribution,every Factor

question 180

True/False

According to the marginal productivity theory of income distribution,every factor of production is paid a wage equal to the equilibrium value of its marginal product.

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Definitions:

Intuitive

Pertaining to or based upon intuition, often involving a grasp of truths, relationships, facts, or the like, spontaneously or without logical reasoning.

Framing Error

A cognitive bias where the way information is presented influences decision making or judgment.

Escalation

The process of increasing or intensifying a situation or conflict, often leading to a more serious state.

Overconfidence

A cognitive bias where someone's subjective confidence in their judgments is greater than their objective accuracy.