Select the correct statement of Adding up Theorem.
A. If income generated by the given output produced during the given period is distributed according to average productivity of all factors, total income will be exhausted.
B. Total income derived from the output will be exhausted if all factors are paid according to their marginal productivity.
C. Total income derived from the output will be exhausted if all factors are paid at the same rate.
D. Total income will be exhausted if all factor rewards are proportional to commodity prices.
Answer:B
Select the correct statement of Adding up Theorem.
A. If income generated by the given output produced during the given period is distributed according to average productivity of all factors, total income will be exhausted. B. Total income derived from the output will be exhausted if all factors are paid according to their marginal productivity. C. Total income derived from the output will be exhausted if all factors are paid at the same rate. D. Total income will be exhausted if all factor rewards are proportional to commodity prices.