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 greater than the value of the marginal product of capital.

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The marginal productivity theory states that each factor of production is paid according to its marginal contribution to the production process, so if labor is paid more, it indicates its marginal product value is higher than that of capital.

According to the Marginal Productivity Theory of Income Distribution, If