THE GENERAL THEORY OF FACTOR. PRICING

EQUITY IN INCOME DISTRIBUTION Wc have studied above the general thcory of income distribution. Two questions arise: (oj Is the distribution equitable, fair and just’! (II) Why is there inequality of incomes? The first question is ethical and involves value...
THE GENERAL THEORY OF FACTOR. PRICING

Equilibrium of Demand and Supply Now. we have worked our way to the demand curve and the supply curve of a factor of production. Both these curves are needed fur the determination of the price of a. productive service. That price will tend to prevail in the factor...
THE GENERAL THEORY OF FACTOR. PRICING

Supply Side The supply curve of a factor of production depends on the various conditions governing its supply. Take the case of labour-a very important productive service. The supply of labour depends on the size and composition and geographical distribution....
THE GENERAL THEORY OF FACTOR. PRICING

MODERN THEORY OF DISTRIBUTION The marginal productivity theory, which we have discussed above only tells us how many workers will an employer engage at a given wage-level in order to maximize his profit. It does not tell us how that wage-level is determined. We also...
THE GENERAL THEORY OF FACTOR. PRICING

Equilibrium Under Imperfect Competition ill lite Factor Market Wc have analysed above conditions of equilibrium in a factor market under perfect competition. But wc know that in the real world. perfect competition docs not prevail. The real world of imperfect...
THE GENERAL THEORY OF FACTOR. PRICING

Conditions of MONOPSONY A monopolistic situation, inter alia. may arise in the following ways: (i) Units of a factory may become specialized to a particular use. Having become thus specific, they have no use for other purposes. For example. a of specialist skill may...