"Income receivers should be paid in accordance with the value of output each produces." This statement is consistent with the
A)monopoly theory of income distribution.
B)marginal productivity theory of income distribution.
C)least-cost, but not profit-maximizing, combination of inputs.
D)concept of compensating wage differences.

Question

Quizplus · Accepted Answer

The marginal productivity theory of income distribution suggests that income should be distributed based on the value of the output produced by each factor of production, aligning with the statement provided.

"Income Receivers Should Be Paid in Accordance with the Value