Essay on Marginal Productivity Theory! The marginal productivity theory of distribution, as developed by J. B. Clark, Wick-steed and others during the last quarter of the 19th century, seeks to provide a general explanation of how the price (or the earnings) of a factor of production is determined. In other words, it lays down the broad principles of the distribution [...]
In this essay we will discuss about the marginal productivity theory of wages. Wages are the payments received in return for labour services and as such are the returns received by labour as a factor of production. There are various theories of wage determination. The most celebrated theory is the marginal productivity theory. The theory is based on the following [...]
In this article we will discuss about the marginal productivity theory that discusses the demand for a variable factor of production. Introduction Marginal Productivity Theory (MPT): The leading exponents of the marginal productivity theory (MPT) are the neoclassical economists J. B. Clark (1847-1938), P. H. Wicksteed (1844-1927) and J. G. Knut Wicksell (1851- 1926). This theory especially discusses the demand [...]