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 proportionately greater than the value of the marginal product of capital.

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According to the marginal productivity theory of income distribution, the relative payment of the factors of production depends on the value of their marginal productivity. If a unit of labor is paid more than a unit of capital, it means that the marginal product of labor is greater than the marginal product of capital at the equilibrium quantity of each factor. Therefore, the statement is true.

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