"Income receivers should be paid in accordance with the value of output each produces." This statement is consistent with the

A) monopoly theory of income distribution.
B) marginal productivity theory of income distribution.
C) least-cost, but not profit-maximizing, combination of inputs.
D) concept of compensating wage differences.

Marginal Productivity Theory

An economic theory suggesting that the wage or value of a worker's labor is equal to the additional output generated by employing one more unit of labor.

Income Distribution

Describes how a nation’s total GDP is spread among its population, affecting the economic health and inequality levels within society.

Compensating Wage Differences

Differences in the wages received by workers in different jobs to compensate for the nonmonetary differences between the jobs.