Marginal Productivity Theory of Income Distribution: The theory states that the factor will be paid an equilibrium amount at which the marginal product earned from employing an additional factor is equal to the price. Poverty Line: This refers to a threshold to measure the number of people who are poor in the society who have insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Question

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Answer 1

Question

Chapter 19, Problem 1BCQ

To determine

Concept Introduction:

Marginal Productivity Theory of Income Distribution: The theory states that the factor will be paid an equilibrium amount at which the marginal product earned from employing an additional factor is equal to the price.

Poverty Line: This refers to a threshold to measure the number of people who are poor in the society who have insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Expert Solution & Answer

Explanation of Solution

In the given case, Walmart Company pays very low wages to its workers that the workers fall below the poverty line.

This is so because each worker is paid the equilibrium amount of the marginal product which might be very low for Walmart Company.

The additional units of factors used by the company might be less productive, which results in a lower marginal product which is paid to the workers.

Moreover, the workers who work less efficiently are paid low wages in return by the company.

Conclusion:

Thus, due to the above reasons, some of Walmart Company workers fall below the poverty line.

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Answer 2

Question

Chapter 19, Problem 1BCQ

To determine

Concept Introduction:

Marginal Productivity Theory of Income Distribution: The theory states that the factor will be paid an equilibrium amount at which the marginal product earned from employing an additional factor is equal to the price.

Poverty Line: This refers to a threshold to measure the number of people who are poor in the society who have insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Expert Solution & Answer

Explanation of Solution

In the given case, Walmart Company pays very low wages to its workers that the workers fall below the poverty line.

This is so because each worker is paid the equilibrium amount of the marginal product which might be very low for Walmart Company.

The additional units of factors used by the company might be less productive, which results in a lower marginal product which is paid to the workers.

Moreover, the workers who work less efficiently are paid low wages in return by the company.

Conclusion:

Thus, due to the above reasons, some of Walmart Company workers fall below the poverty line.

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Answer 3

Question

Chapter 19, Problem 1BCQ

To determine

Concept Introduction:

Marginal Productivity Theory of Income Distribution: The theory states that the factor will be paid an equilibrium amount at which the marginal product earned from employing an additional factor is equal to the price.

Poverty Line: This refers to a threshold to measure the number of people who are poor in the society who have insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Expert Solution & Answer

Explanation of Solution

In the given case, Walmart Company pays very low wages to its workers that the workers fall below the poverty line.

This is so because each worker is paid the equilibrium amount of the marginal product which might be very low for Walmart Company.

The additional units of factors used by the company might be less productive, which results in a lower marginal product which is paid to the workers.

Moreover, the workers who work less efficiently are paid low wages in return by the company.

Conclusion:

Thus, due to the above reasons, some of Walmart Company workers fall below the poverty line.

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Answer 4

Question

Chapter 19, Problem 1BCQ

To determine

Concept Introduction:

Marginal Productivity Theory of Income Distribution: The theory states that the factor will be paid an equilibrium amount at which the marginal product earned from employing an additional factor is equal to the price.

Poverty Line: This refers to a threshold to measure the number of people who are poor in the society who have insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Expert Solution & Answer

Explanation of Solution

In the given case, Walmart Company pays very low wages to its workers that the workers fall below the poverty line.

This is so because each worker is paid the equilibrium amount of the marginal product which might be very low for Walmart Company.

The additional units of factors used by the company might be less productive, which results in a lower marginal product which is paid to the workers.

Moreover, the workers who work less efficiently are paid low wages in return by the company.

Conclusion:

Thus, due to the above reasons, some of Walmart Company workers fall below the poverty line.

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Answer 5

Chapter 19, Problem 1BCQ

To determine

Concept Introduction:

Marginal Productivity Theory of Income Distribution: The theory states that the factor will be paid an equilibrium amount at which the marginal product earned from employing an additional factor is equal to the price.

Poverty Line: This refers to a threshold to measure the number of people who are poor in the society who have insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Expert Solution & Answer

Explanation of Solution

In the given case, Walmart Company pays very low wages to its workers that the workers fall below the poverty line.

This is so because each worker is paid the equilibrium amount of the marginal product which might be very low for Walmart Company.

The additional units of factors used by the company might be less productive, which results in a lower marginal product which is paid to the workers.

Moreover, the workers who work less efficiently are paid low wages in return by the company.

Conclusion:

Thus, due to the above reasons, some of Walmart Company workers fall below the poverty line.

Answer 6

Chapter 19, Problem 1BCQ

To determine

Concept Introduction:

Marginal Productivity Theory of Income Distribution: The theory states that the factor will be paid an equilibrium amount at which the marginal product earned from employing an additional factor is equal to the price.

Poverty Line: This refers to a threshold to measure the number of people who are poor in the society who have insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Expert Solution & Answer

Explanation of Solution

In the given case, Walmart Company pays very low wages to its workers that the workers fall below the poverty line.

This is so because each worker is paid the equilibrium amount of the marginal product which might be very low for Walmart Company.

The additional units of factors used by the company might be less productive, which results in a lower marginal product which is paid to the workers.

Moreover, the workers who work less efficiently are paid low wages in return by the company.

Conclusion:

Thus, due to the above reasons, some of Walmart Company workers fall below the poverty line.

Answer 7

Chapter 19, Problem 1BCQ

To determine

Concept Introduction:

Marginal Productivity Theory of Income Distribution: The theory states that the factor will be paid an equilibrium amount at which the marginal product earned from employing an additional factor is equal to the price.

Poverty Line: This refers to a threshold to measure the number of people who are poor in the society who have insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Answer 8

Expert Solution & Answer

Explanation of Solution

In the given case, Walmart Company pays very low wages to its workers that the workers fall below the poverty line.

This is so because each worker is paid the equilibrium amount of the marginal product which might be very low for Walmart Company.

The additional units of factors used by the company might be less productive, which results in a lower marginal product which is paid to the workers.

Moreover, the workers who work less efficiently are paid low wages in return by the company.

Conclusion:

Thus, due to the above reasons, some of Walmart Company workers fall below the poverty line.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 19.A - Prob. 1P Ch. 19.A - Prob. 2P Ch. 19.A - Prob. 3P Ch. 19.A - Prob. 4P Ch. 19.A - Prob. 5P Ch. 19 - Prob. 1BCQ Ch. 19 - Prob. 2BCQ Ch. 19 - Prob. 3BCQ Ch. 19 - Prob. 1P Ch. 19 - Prob. 2P

Explanation of Solution

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Chapter 19 Solutions