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Commerce · Q120

Economics

Graduate and Post Graduate · Commerce · question 120

Q120

Which of the following is NOT the assumption of the Marginal Productivity Theory of Distribution?

A.
Homogenity of a factor
B.
Perfect competition in the factor market
C.
All factors, except one, are variable
Answer
D.
Given stock of each factor and full employment

Answer: Option C

Solution

Answer: Option C
Solution:
All factors, except one, are variable is NOT the assumption of the Marginal Productivity Theory of Distribution.