Turizm va iqtisodiyot

O’ZBЕKISTОN RЕSPUBLIKАSI

ОLIY VА O’RTА MАХSUS TА’LIM VАZIRLIGI

URGАNCH DАVLАT UNIVЕRSITЕTI

"TURIZM VA IQTISODIYOT" FAKULTETI



MICROECONOMICS

fаnidаn

KURS ISHI

“The theory of marginal productivity of factors of production”

Topshirdi: Masharipov Odilbek

Qabul qildi: PhD. Rudenko Inna

Urgаnch – 2020

1

Table of contents

Introduction

I. Types of Marginal Productivity

1.1

1.2

II. Assumptions of Marginal Productivity Theory

2.1

Conclusions and recommendations

Literature reference

Theme:’’The theory of marginal productivity of factors of production’’.

Marginal productivity theory contributes a significant role in factor pricing. It is a classical theory of factor pricing that was advocated by a German economist, T.H. Von Thunen in 1826.

The theory was further developed and discussed by various economists, such as J.B. Clark, Walras, Barone, Ricardo, and Marshall.

According to this theory, under perfect competition, the price of services rendered by a factor of production is equal to its marginal productivity. Marginal product refers to the increase in amount of output by the addition of one unit of factor of production while keeping the other factors constant. The increase in the output with the addition of one unit of factors of production is known as marginal productivity.