According to the Neoclassical Theory of Distribution, If Firms Are

Multiple Choice

According to the neoclassical theory of distribution, if firms are competitive and subject to constant returns to scale, total income in the economy is distributed:

A) only to the labor used in production.
B) partly between labor and capital used in production, with the surplus going to the owners of the firm as profits.
C) equally between the labor and capital used in production.
D) between the labor and capital used in production, according to their marginal productivities.