At Hamill Manufacturing of Pennsylvania,highly Skilled Senior Machinists Are Paid

question 199

Multiple Choice

At Hamill Manufacturing of Pennsylvania,highly skilled senior machinists are paid $70,000,excluding benefits,but the average skilled machinist generates approximately $137,000 in value added.This difference is due to the fact that the:

• A)marginal productivity theory of income distribution does not apply in this case.
• B)value of the marginal product of the last machinist hired is less than the average of all machinists employed.
• C)value of the marginal product of the last machinist hired is greater than the average of all machinists employed.
• D)value of the marginal product of the last machinist hired is equal to the average of all machinists employed.