JAMB - Economics (2006 - No. 36)
The marginal productivity theory applies in a
unionized labour market
perfectly competitive market
monopsonistic market only
monopolistic market only
Forklaring
The marginal productivity theory states that under perfect competition, the price of each factor of production will be equal to its marginal productivity.
Marginal productivity refers to the extra output, return, or profit yielded per unit by advantages from production inputs.