Marginal Productivity Theory and Condition for Equilibrium The Marginal Productivity Theory is based on the operation of the Law of Diminishing Returns. As we employ more and more of a factor in the production of a commodity, returns from its fall. We shall therefore employ a …
The most important points for its criticism are the following Value of Marginal Productivity According to this theory the entrepreneur or owner of a firm can measure the value of marginal productivity of factors of production, and thus he can try to equate it with the …
The Marginal Productivity Theory explains the basis of awarding the factors of production their rewards. Many economists worked in development of this theory like David Ricardo, Alfred Marshall, Barone, J.B. Clark and Walras. Now the final work on this theory is attributed to the Neo-Classical School …
Nature Character and Ideas of Parliament One restriction is imposed by the character of the body itself, which exercises the sovereign power. A sovereign Hindu ruler will never order the slaughtering of cows just as a Muslim ruler will never abolish Islam from the state. Similarly, …
Introduction Sovereignty of British Parliament Sovereignty of the British Parliament is an important feature of the British Constitutional system. The struggle between the King and the Parliament was finally decided by the Glorious Revolution of 1688, which was further reinforced by the Act of Settlement (1701). …
Introduction Theory of Distribution The Theory of Distribution also known as Pricing of Factors of Production. The theory deals with the determination of the reward of the four factors of production i.e. land, labour, capital and organization. It is the analysis of how and in what …
Sanction behind Conventions or Why Conventions are Obeyed? Constitutional conventions are not recognized by judicial courts. So the question arises: Why are they so scrupulously, obeyed by all concerned? Dicey’s View One answer to this question has been given by Prof. Dicey: He says that conventions …
Advantages and Disadvantages of Communism Advantages of Communism Following are the merits and advantages of communist economic system Elimination of Wastage of Resources. Under comprehensive State planning, goods and services are produced strictly according to need. Anohter befit of communist economy is the elimination of large-scale …
