Question

Hicks marginal productivity theory of distribution

Answer 1

Explanation:

• Marginal productivity theory was first put forward to explain the determination of wages, i.e., reward for labour but later on prices of other factors of production such as land, capital etc. also were explained with marginal productivity.

• Hicks popularised the doctrine of marginal productivity

Answer 2

Answer:

=> MP theory of distribution states that price of any input is determined according to the marginal product of that input. Thus, the price of labour—the wage rate is determined by the volume of marginal product, or to be more specific, the value of marginal physical products.✨

Thanks ☺️