Archive | Factor Pricing Theory

Top 6 Features of Factor Pricing | Commodity

The following points highlight the top six features of factor pricing. The features are: 1. Derived Demand 2. Joint Demand 3. Difficulties in Changing Factor Supply 4. No Full Control Over the Factor Supply 5. A Separate Theory for Each Factor 6. No Homogeneous Units of a Factor. Feature # 1. Derived Demand: It is observed that the demand for [...]

By Nipun S|2017-01-13T05:58:18+05:30January 13, 2017|Factor Pricing Theory|Comments Off

Factor Pricing Theory: Frequently Asked Questions

Read this article to learn about the top twenty frequently asked questions on Factor Pricing Theory. Q.1. What is the difference between marginal physical product and marginal revenue product? Ans. MPP is the change in total product attributable to a change in the use of a variable input. When MPP is expressed in money firms, we obtain VMP. MRP is [...]

By Deepali Pal|2015-12-19T15:18:28+05:30November 17, 2015|Factor Pricing Theory|Comments Off

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