The marginal productivity theory of income distribution states that a person's total income is determined by

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The marginal productivity theory of income distribution asserts that an individual's income is determined by the amount and productivity of the factors of production that they possess, such as land, labor, capital, and entrepreneurship. This theory maintains that individuals who possess more valuable and productive resources will earn higher incomes compared to those who do not. Therefore, Option A is the most appropriate answer. Option B is flawed as the theory does not suggest that income is solely determined by the amount of work put in by an individual. Option C is incorrect because the profitability of the firm has no bearing on the individual worker's income. Option D is also incorrect since inherited wealth is not a factor considered by the marginal productivity theory of income distribution.

The Marginal Productivity Theory of Income Distribution States That a Person's