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lara [203]
3 years ago
5

The marginal productivity theory of resource demand suggests that those resources whose productivity levels are high will end up

getting a higher share of the economy's income.
a) true
b) false
Business
1 answer:
Travka [436]3 years ago
4 0

Answer: a) true

Explanation:

  • Marginal product is a term which is used to represent the raise in amount of production by adding of one unit of factor of production [Taking other factors constant.]

According to marginal productivity theory of resource,

Under a perfect competition, if there is an increase in the marginal productivity of one resource(while taking price level constant) then that resource will be paid a higher wage rate.

This implies that a higher share of the economy's income.

Hence, the given statement is "True".

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2 years ago
If your uncle borrows $56,000 from the bank at 10 percent interest over the eight-year life of the loan. Use Appendix D for an a
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