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The Clark-Wicksteed product exhaustion theorem, also known as the adding-up problem, states that in a
competitive factor market when every factor employed in the production process is paid a price equal to the
value of its marginal product, then payments to the factors exhaust the total value of the product.

Mathematically, this can be shown as follows: Let Q be the total output, MP be the marginal product, L be
labor and K be capital. Then, Q = (MP_L) * L + (MP_K) * K. To find out the value of output, multiply through
by P (price). Thus, P * Q = (MP_L * P) * L + (MP_K * P) * K. Where (MP_L * P) is the value of marginal
product of labor and (MP_K * P) is the value of marginal product of capital. Therefore, P * Q = VMP_L * L +
VMP_K * K, where VMP_L is the value of marginal product of labor and VMP_K is the value of marginal
product of capital.

This theorem plays an important role in the theory of distribution as it provides a solution to how the total
output should be distributed among the factors of production. Is there anything else you would like to know?
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