At Hamill Manufacturing of Pennsylvania Highly Skilled Senior Machinists Are

Multiple Choice

At Hamill Manufacturing of Pennsylvania 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:

A) the marginal productivity theory of income distribution does not apply in this case.
B) the value of the marginal product of the last machinist hired is less than the average of all machinists employed.
C) the value of the marginal product of the last machinist hired is greater than the average of all machinists employed.
D) the value of the marginal product of the last machinist hired is equal to the average of all machinists employed.