What is Marginal Revenue Productivity Theory of Wages

It is a model of wage levels that is set to match to the marginal revenue product of labor, which is the increment to revenues generated by the increment to output created by the last laborer employed. The marginal revenue productivity theory of wages is a model of why wage levels are set to match to the marginal revenue product of labor. In a model, this is justified by the premise that the company is maximizing its profits and, as a result, would only employ labor up to the point where the marginal labor expenses are equal to the marginal income generated by the company. This is an example of a model that is seen in neoclassical economics.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Marginal revenue productivity theory of wages

Chapter 2: Perfect competition

Chapter 3: Profit maximization

Chapter 4: Price elasticity of demand

Chapter 5: Marginal cost

Chapter 6: Production function

Chapter 7: Marginal product

Chapter 8: Diminishing returns

Chapter 9: Marginal revenue

Chapter 10: Cournot competition

Chapter 11: Ramsey problem

Chapter 12: Cost curve

Chapter 13: Solow-Swan model

Chapter 14: Harrod-Domar model

Chapter 15: Marginal rate of technical substitution

Chapter 16: Supply (economics)

Chapter 17: Incremental capital-output ratio

Chapter 18: Marginal product of capital

Chapter 19: Marginal product of labor

Chapter 20: Robinson Crusoe economy

Chapter 21: Monopoly price

(II) Answering the public top questions about marginal revenue productivity theory of wages.

(III) Real world examples for the usage of marginal revenue productivity theory of wages in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Marginal Revenue Productivity Theory of Wages.