# Archive | Theory of Distribution

## Euler’s Theorem of Distribution (With Diagram) | Firm

In this article we will discuss about Euler’s theorem of distribution. According to marginal productivity theory, every input is paid the value of its marginal product. This means that the entire product will always be handed out to those who work on it. In other words, the sum of the marginal products add up exactly to the total output. There [...]

By |2017-01-13T05:55:20+05:30January 13, 2017|Theory of Distribution|Comments Off on Euler’s Theorem of Distribution (With Diagram) | Firm

## The Marginal Productivity Theory of Distribution

The below mentioned article provides an overview on the Marginal Productivity Theory of Distribution. The marginal productivity theory states that the demand for a factor depends on its marginal revenue productivity (MRP). MRP is the addition made to total revenue by employing one more unit of a variable factor, other factors remaining unchanged. As a general rule, the marginal revenue [...]

By |2016-03-02T04:20:15+05:30March 2, 2016|Theory of Distribution|Comments Off on The Marginal Productivity Theory of Distribution

## Relationship between Income and Leisure (With Diagram)

The upcoming discussion will guide you about the relationship between income and leisure. Indifference curve can show the relationship between leisure and income. The horizontal axis represents hours of leisure and the vertical axis represents income. The origin indicates that the individual B has no leisure. If B does not work, he has the maximum amount of leisure time available. [...]

By |2015-12-19T15:05:16+05:30December 16, 2015|Theory of Distribution|Comments Off on Relationship between Income and Leisure (With Diagram)
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