The marginal productivity theory of distribution holds that
a. each factor is paid what it deserves.
b. the owner of each factor is paid the amount that the factor contributes to earnings.
c. each factor's income depends on how hard it works.
d. each factor receives an equal share of the revenue from production.
b
You might also like to view...
The marginal product of labor is equal to the
A) total product divided by the total number of workers hired. B) increase in the total product that results from hiring one more worker with all other inputs remaining the same. C) slope of the marginal product of labor curve. D) None of the above answers are correct.
Economies of scale enable financial institutions to
A) reduce transactions costs. B) avoid the asymmetric information problem. C) avoid adverse selection problems. D) reduce moral hazard.