This unit covers the modern theory of rent; the marginal productivity theory of wages, collective bargaining, minimum wages and wage differentials; nominal and real interest, interest rate differentials, and the loanable funds and liquidity preference theories; and economic versus business profit with the dynamic and innovation theories of profit.
Theory of Factor Pricing
Theory of Factor Pricing
Learn Theory of Factor Pricing in Microeconomics for Business with comprehensive educational content from Padandas.
Nov 7, 2026
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1.
Asked in 2077 (2 marks)
What are the dynamic changes to arise the profit?
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2.
Asked in 2077 (15 marks)
Explain the liquidity preference theory of interest. What are its criticisms?
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3.
Asked in 2078 (2 marks)
What are the causes for interest rate differentials?
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4.
Asked in 2078 (10 marks)
What are the motives of demand for money according to Keynes? Explain.
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5.
Asked in 2079 (2 marks)
Define value of marginal productivity of labour.
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6.
Asked in 2079 (10 marks)
What is economic rent? How is it determined?
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