According to the marginal productivity theory of income distribution,if a unit of labor is paid more than a unit of capital,it is because,at the equilibrium quantity of each factor,the value of the marginal product of labor is proportionately greater than the value of the marginal product of capital.

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According to the marginal productivity theory of income distribution, the factor of production (either labor or capital) that has a higher marginal product will be paid more. Therefore, if labor is being paid more than capital, it is because the value of the marginal product of labor is proportionately greater than the value of the marginal product of capital at the equilibrium quantity of each factor.

According to the Marginal Productivity Theory of Income Distribution,if a Unit