The marginal productivity theory of distribution was systmatically evaluated by
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Therefore the density of population is expressed as the number of persons per square kilometre. According to 2001 census, the density of population in India is 324 persons per square kilometre. Over the last 100 yearsdensity has increased more than four times. It has increased from 77 in 1901 to 324 in 2001.
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The theory assumes that every producer desires to reap maximum profits. This is because the organizer is a rational person and he so combines the different factors of production in such a way that marginal productivity from a unit of money is the same in the case of every factor of production.
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