Multiple Choice
The marginal productivity theory of income distribution says that:
A) each factor is paid the equilibrium value of the output generated by the last unit of that factor employed in the factor market as a whole.
B) each factor is paid an amount greater than the value of the output generated by the last unit of that factor employed in the factor market as a whole.
C) each factor is paid an amount less than the value of the output generated by the last unit of that factor employed in the factor market as a whole.
D) the payment to each factor does not correspond to the marginal product of the factor.
Correct Answer:

Verified
Correct Answer:
Verified
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