Tag Archives | Marginal Productivity Theory

Essay: Marginal Productivity Theory | Economics

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 [...]

By |2017-01-13T05:58:18+05:30January 13, 2017|Marginal Productivity Theory|Comments Off on Essay: Marginal Productivity Theory | Economics

Marginal Productivity Theory: 5 Defects | Perfect Competition

The following points highlight the five major defects of the marginal productivity theory. 1. One of the major assumptions of the theory is that there exists perfect competition in both the factor (labour) market and the product market. This assumption is not realistic be­cause, actually, in almost all the markets, perfect competition does not exist. First, in most of the [...]

By |2016-09-17T15:55:48+05:30September 17, 2016|Perfect Competition|Comments Off on Marginal Productivity Theory: 5 Defects | Perfect Competition

The Marginal Productivity Theory (MPT) (With Diagram)

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 [...]

By |2016-09-17T15:55:44+05:30September 17, 2016|Marginal Productivity Theory|Comments Off on The Marginal Productivity Theory (MPT) (With Diagram)
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