Question

Compare and contrast Marshallian theory with the Ricardian theory of rent.

Answer 1

Marshallian theory and Ricardian theory of rent.

Explanation:

• Marshall's quasi-rent theory is the extension of the Ricardian rent principle to the short-term earnings of capital equipment (such as machinery, construction, etc.) in the short-term inelastic supply.
• In the theory of Ricardo, it is held that land rent occurs because of variations in fertility or condition of the different land plots.
• The distinctive feature of land is the fact that its supply is completely inelastic to price changes and therefore its earnings are largely dependent on the demand for it. n the short term, however, fixed capital equipment such as machinery is also perfectly inelastic in supply, and the expense of its manufacture is negligible once it is made.

Answer 2

Answer:

Marshallian theory and Ricardian theory of rent.

Explanation:

Marshall's quasi-rent theory is the extension of the Ricardian rent principle to the short-term earnings of capital equipment (such as machinery, construction, etc.) in the short-term inelastic supply.

In the theory of Ricardo, it is held that land rent occurs because of variations in fertility or condition of the different land plots.

The distinctive feature of land is the fact that its supply is completely inelastic to price changes and therefore its earnings are largely dependent on the demand for it. n the short term, however, fixed capital equipment such as machinery is also perfectly inelastic in supply, and the expense of its manufacture is negligible once it is made.

Explanation:

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