Marginal Productivity Theory Implies That a Worker Will Be Paid

question 145

Multiple Choice

Marginal productivity theory implies that a worker will be paid an amount

• A)equal to his or her contribution to the productive process.
• B)less than his or her contribution to the productive process.
• C)greater than his or her contribution to the productive process.
• D)determined by his or her individual bargaining.

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Definitions:

Producing Goods

The process of creating, manufacturing, or assembling products or goods from raw materials or components.

Demand

The consumer's desire and willingness to pay a price for a specific good or service.

Cash Sales

Transactions in which goods or services are paid for and received at the time of the transaction with cash or other immediate payment methods.

Cash Cycle

The period between the purchase of inventory and the collection of receivables from customers, indicating liquidity.