Marginal Productivity Theory Would Suggest That

question 65

Multiple Choice

Marginal productivity theory would suggest that

• A) all workers should be paid the same wage.
• B) higher productivity will increase the market wage of an individual.
• C) labor demand will have no impact on the wage paid.
• D) workers cannot do anything to improve their wage prospects for the future.

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Definitions:

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities that go into producing them, providing more accurate cost information.

Customer Support

Assistance provided by a company to its customers with the products or services it sells.

Activity-based Costing

A cost allocation technique that assigns overhead and indirect costs to relevant products and services based on the activities they demand.

Machining

The process of shaping, cutting, or altering a material using machines or tools, often used in the manufacturing of parts or components.