Use the Following to Answer Questions

question 67

Multiple Choice

Use the following to answer questions :
Figure: Equilibrium in the Labour Market
-At Hamill Manufacturing of Alberta,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) equilibrium wage rate includes other costs,such as employee benefits,that have to be subtracted from the $70 000 salary.
• C) equilibrium wage rate includes other costs,such as employee benefits,that have to be added to the $70 000 salary.
• D) value of the marginal product of the last machinist hired is equal to the average of all machinists employed.