John Bates Clark generalized marginal productivity principle states that
John Bates Clark generalized marginal productivity principle states that
although factors of production will be paid according to their marginal product, this provide no insight as to whether the resulting societal income distribution was morally justified, or ethically superior.
denies the possibility of diminishing returns to any factor of production, since each input factor could be fixed.
the value of each factor of production is determined by its marginal contribution to total output.
land is the only fixed factor.
both capital and land can be fixed factors, but labor cannot be treated as a fixed factor.