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viii. Variable input coefficient:

Assumes that an organization can use the factors of production in different quantities. In other words, the quantity of a factor can be changed, while keeping the other factors constant. For example, a land owner can employ two to three workers to plough a one hectare land.

ix. Same state of technology:

Assumes that the technology used in production is constant.

Limitations of Marginal Productivity Theory:

Marginal productivity theory contributes a significant role in factor pricing.

In spite of its major contribution in factor pricing, the theory suffers from certain limitations, which are as follows: