Marginal productivity theory of distribution - The theory that factors are paid the value of their marginal product so that the total earnings of each type of factor of production equals the value of the marginal product of that factor ...
MARGINAL PRODUCTIVITY THEORY: A theory used to analyze the profit-maximizing quantity of inputs (that is, the services of factor of productions) purchased by a firm in the production of its output.
The concept of the marginal productivity of an input in a productive process is a particularly important idea in economic analysis, because under competitive conditions, ...
- the production possibility frontier (drawn under the hypothesis of decreasing marginal productivity), ...
Wicksell also laid out marginal productivity theory, the theory that the payment to each factor of production equals that factor's marginal product.
From the above diagram as the number of labour units increase then the marginal productivity of labour declines up to a point where the marginal production value is zero and starts to fall to negative, ...
An American Neoclassical economist renowned for his development of the marginal productivity theory of distribution. John Bates Clark is best known for his works on marginal utility, a revolutionary principal in economics.
production efficiency
factors of production
total, average, and marginal product curves
marginal productivity
isoquants
the marginal rate of technical substitution ...
This type of production function is generally known as diminishing marginal productivity: at low levels of production, productivity gains are easy and marginal costs falling, but productivity gains become smaller as production increases; eventually, ...
The physical output that is due to the addition of one more unit of a variable factor of production; the change in total product occurring when a variable input is increased and all other inputs are held constant; also called marginal productivity or ...
 See also: Productivity, Inputs, Perfect competition, Keynesian, Tip
  
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