Marginal Productivity Theory of Distribution
August 23, 2020Introduction to Business Economics
August 31, 2020
This presentation covers the following concepts:
- Uncertainty Bearing Theory of Profit
- Non- Insurable Risks: Competitive risk, Technical risk, Risk of government intervention, Cyclical risk & Risk of demand
- Criticisms of the Theory: Not direct relation between profit and uncertainty, Profit is reward for avoidance of uncertainty, Uncertainty is not factor of production & Reward for all things performed by organization
