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A major criticism of the marginal productivity theory of income distribution is that?

Sagot :

The uneven allocation of property resources, such as land, which results in income inequality, is a key criticism of the marginal productivity theory of income distribution. If all other factors remain constant, increasing wage rates will result in higher payrolls if the demand for labor is inelastic.

Because it ignores the technical changes that lead to a shift in the production resources function, some economists have challenged this theory as being static. This curve is taken as supplied by this hypothesis. Because it is static in nature, it is viewed as an inadequate theory. According to the idea of marginal productivity, in the long run with perfect competition.

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