Assumptions of marginal productivity theory

Assumptions of marginal productivity theory:

The marginal productivity theory depends on the assumptions illustrated below:

1. There is perfect competition.

2. Each units of a factor are homogeneous. This means that one unit of a factor is similar as the other.

3. Factors can be replaced for each other. That is, every factor is interchangeable.

4. The theory depends on the law of diminishing returns as exerted to the business. The law of diminishing returns states that when you go on utilizing more and more units of a factor, its marginal returns will reduce. Therefore a firm, whenever it comes to know that the raise in a certain factor is resultant in diminishing returns, then the firm will replace it with certain other factor.

Thus, it will try to decrease the cost of production.

Latest technology based Economics Online Tutoring Assistance

Tutors, at the, take pledge to provide full satisfaction and assurance in Marginal Productivity help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Marginal Productivity, project ideas and tutorials. We provide email based Marginal Productivity help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Marginal Productivity. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Marginal Productivity. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.

2015 ┬ęTutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.