The Marginal Productivity Theory States That

question 86

Multiple Choice

The marginal productivity theory states that

• A)as variable inputs are added to a fixed quantity of other inputs eventually the additional output produced by each additional variable input will decrease.
• B)inputs will be used most efficiently when the additional output gained from each type of input is exactly the same.
• C)firms in perfectly competitive product and factor markets will pay factors their marginal revenue products.
• D)marginally productive inputs (that is, inputs that are not particularly productive) will not be heavily utilized.

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