compare and contrast marshallian theory with the ricardian theory of rent
Dear Aspirant
The Mashllian theory makes us to understand that the factors that determine the length of production that are concerned with land is defines as tent. While the Ricardian theory states that the rent is the amount paid to the land owners as s part of the utilization of Earth's crust
Ricardian theory of rent different from modern theory of rent
In such a way the rent is a surplus of price over the cost of production and so it does not and cannot enter into cost and price. But, modern writers have shown that rent , considered from the standpoint of the individual, enters into cost and price.
Or
In Ricardian theory it is held that rent of land arises on account of differences in fertility or situation of the different plots of land.but according to the Mashllian , rent arises on a count of the inelasticity of supply of factors.
