marginal productivity theory of wages
Hello, Here is the marginal productivity theory of wages properly explained in a simplified way for all economics students. It is also known as marginal productivity theory of distribution for factors of production. in this video we examine how demand for labour relates with marginal revenue product, marginal factor cost and wages for the workers. The wages according to this theory are equal to the value of marginal product and this is inorder to maximise profits under perfect competition. its a major form of wage determination.