Labor leaders used to say, "Without any labor there is no product. Hence labor deserves all the product." Apologists for capital would reply, "Take away all capital goods, and labor scratches a bare pittance from the earth; practically all the product belongs to capital." Analyze the flaws in these arguments. If you were to accept the arguments, show that they would allocate 200 or 300 percent of output to two or three factors, whereas only 100 percent can be allocated. How does the neoclassical marginal-productivity theory resolve this dispute?