3.2 — Marginal Productivity Theory — Readings
Wednesday, October 14, 2020
- Ch.9 “The Transition to Neoclassical Economics: Marginal Analysis Extended” up to Profits and Interest (p.260) in Landreth & Colander
- Ch.11 “Marginal productivity and factor prices” in Blaug
The following Wikipedia entries can also provide more background:
- Friedrich von Wieser
- Eugen von Böhm-Bawerk
- John Bates Clark
- Phillip Wicksteed
- Francis Ysidro Edgeworth
- Knut Wicksell
Questions to Help Your Reading
- How are the prices of factors of production (land, labor, capital, etc) determined?
- What is the problem of imputation?
- What is marginal (physical) product? What is average (physical) product?
- What are returns to scale? How are they different from economies of scale?
- How does the assumption of competitive markets affect the answer to many of these questions?
- What is “product exhaustion?”
- Is there a moral connation of factors of production being paid their marginal products?