Question

Marginal productivity theory implies that a worker will be paid an amount a. equal to his or her contribution to the productive process. b. determined by his or her individual bargaining. c. greater than his or her contribution to the productive process. d. less than his or her contribution to the productive process.

Answer 1

a. equal to his or her contribution to the productive process

Step-by-step explanation:

Marginal productivity refers to the extra income incurred by increasing one unit of labor when all the other inputs are kept in constant. The theory of Marginal productivity was advocated by T.H. Von Thunen in 1826 who was a German economist. The price of the services This theory states that the price of all the production factor is equal to the marginal productivity under the perfect competition.