Answer to Question #278590 in Microeconomics for Rohit

Question

Campare and contrast marshallian theory with the ricardian theory of rent.

Answer 1

The Marshallian theory puts across that factors determining the length of production concerned with land is defined as rent while the Richardian theory says that rent is the amount payable to owners of the land for one to utilize Earths crust.

Also, Marshallian theory states that rent arises on account of inelasticity of supply of factors while the Richardian theory states that it arises due to the differences in fertility or situation of the plots of land.