According to the marginal productivity theory of income distribution,if a unit of labour 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 labour is equal to the value of the marginal product of capital.

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The marginal productivity theory of income distribution states that each factor of production is paid according to its marginal product. If labor is paid more than capital, it is because the value of the marginal product of labor is higher than that of capital, not because they are equal.

According to the Marginal Productivity Theory of Income Distribution,if a Unit