Asked by
Sagar Ganjani
on Oct 26, 2024
Verified
According to the _____,in a perfectly competitive economy each factor of production is paid its equilibrium value of the marginal product.
A) theory of labor supply
B) efficiency-wage model
C) theory of compensating differentials
D) marginal productivity theory of income distribution
Marginal Productivity
The change in output resulting from employing one more unit of a particular input, keeping all other inputs constant.
Income Distribution
Refers to how a nation’s total GDP is distributed amongst its population.
- Comprehend the theory of marginal productivity in relation to the distribution of income.
Verified Answer
TJ
Learning Objectives
- Comprehend the theory of marginal productivity in relation to the distribution of income.
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