When Each Factor Is Paid an Amount Equal to the Value

question 69

Multiple Choice

When each factor is paid an amount equal to the value of the marginal product of the last unit of that factor employed in the factor market as a whole,this is:

• A)the marginal productivity theory of income distribution.
• B)diminishing marginal product.
• C)the factor distribution of income.
• D)the efficiency wage model.

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