The Marginal Productivity Theory States That

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.