Marginal productivity theory of distribution

Marginal productivity theory of distribution,

Definition of Marginal productivity theory of distribution:

  1. A theory of distribution formulated in the 1890s which states that input to production - whether capital or labor - will continue to be added until the value of its marginal product (the revenue or yield resulting from the input) is equal to the cost of the input.

Meaning of Marginal productivity theory of distribution & Marginal productivity theory of distribution Definition