According to the marginal productivity theory of income,
A)the greater the quantity of resources owned by an individual, the greater his incentive to increase productivity and his income.
B)the average income received by an individual who supplies resources is influenced by the resources owner's marginal productivity.
C)the income received by an individual who supplies labour services equals the incremental benefit generated to the firm by that individual's labour.
D)the income received by an individual who supplies labour services equals the profit generated to the firm by that individual's labour.

Question

Quizplus · Accepted Answer

The marginal productivity theory of income states that the income received by an individual is equal to the marginal product of their labor, which is the additional benefit their labor provides to the firm.

According to the Marginal Productivity Theory of Income