These enterprises recorded marginal productivity of capital
Simulation of this research incorporating two other realities that marginal productivity of capital
falls as capital concentrates and family size decreases as income increases illustrates the growth process without and with zakat.
Positive output elasticity with respect to capital for textile and organized manufacturing sector (during pre-reform period) implies marginal productivity of capital
is positive for this industry.
Indeed, according to Lange, capital accumulation would come to a halt only when the marginal productivity of capital
would equal the time preference of the individuals.
Therefore, marginal productivity of capital
To that end it propounds that: 1) marginal productivity of labour corresponds to the ratio of output to labour input quantity; 2) marginal productivity of capital
corresponds to the ratio of output to capital input quantity; whereas, extension of this principle for 3-factor production function puts forward that--3) marginal productivity of energy corresponds to the ratio of output to energy input quantity.
The diminishing marginal utility of scientific investment due to risk aversion plays a role analogous to the diminishing marginal productivity of capital
in traditional optimal growth theory beginning with Ramsey.
In the first case (case I), we have the Ramsey model because the marginal productivity of capital
is decreasing for all amount of k.
This increase in capital in the noncorporate sector will decrease the marginal productivity of capital
in that sector, resulting in a lower return.
Note also that if [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] then [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII], this is, if the price of energy of type s is higher than the marginal productivity of capital
[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] then no capital of type s is used.
A high rate of 7%, approximating the marginal productivity of capital
, has been adopted by the Office of Management and Budget, while a low rate of 2-3%, approximating the federal borrowing rate, has been adopted by the General Accounting Office, the Congressional Budget Office, and the U.
When a piece of capital leaves the United States (say, because its marginal productivity elsewhere has increased), the supply of labor in the United States relative to capital rises--raising the marginal productivity of capital
in the United States and, thus, encouraging new investment here.