At Hamill Manufacturing of Alberta,highly skilled senior machinists are paid $70 000,excluding benefits,but the average-skilled machinist generates approximately $137 000 in value added.This difference means that the marginal productivity theory of income distribution doesn't hold.

Question

Quizplus · Accepted Answer

The marginal productivity theory of income distribution suggests that workers are paid according to the value of their marginal contribution to the production process. The difference in pay and value added does not necessarily disprove this theory, as other factors such as benefits, market conditions, and company policies can influence wages.

At Hamill Manufacturing of Alberta,highly Skilled Senior Machinists Are Paid