Which of the following is not an assumption of the marginal productivity theory ?
A low price of the factor is not an assumption of marginal productivity theory. Homogeneous factor units, factor mobility and perfect competition are standard assumptions…
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Which of the following is not an assumption of the marginal productivity theory ?
Answer and explanation
Correct answer C
A low price of the factor is not an assumption of marginal productivity theory. Homogeneous factor units, factor mobility and perfect competition are standard assumptions used to relate factor remuneration to marginal productivity.
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Himachal Pradesh SET (HP SET)