Marginal productivity theory states that:
A)people cognitively evaluate potential behaviours in relation to rewards offered in exchange.
B)an employee can produce anything of value if the profit margin of a product or service is large enough for the employer to reap.
C)unless an employee can produce something of value from his/her job equal to the value received in wages, it will not be worthwhile for an employer to hire that employee.
D)both employees and management will act opportunistically to obtain the most favourable exchange possible.
E)people are concerned about fairness of the reward outcomes exchanged for employee inputs.

Question

Quizplus · Accepted Answer

Marginal productivity theory suggests that an employer will only hire an employee if the value of what they produce is at least equal to the wages paid, ensuring it is worthwhile for the employer.

Marginal Productivity Theory States That