Labour economics Labour economics seeks to understand the functioning and dynamics of the markets for wage labour. Labour markets or job markets function through the interaction of workers and employers. Marginal Productivity Theory (Neo Classical Version ... Marginal Productivity Theory (Neo Classical Version): The marginal productively theory is an attempt to explain the determination of the rewards of various factors of production in a competitive market. Profit maximization In economics, profit maximization is the short run or long run process by which a firm may determine the price, input, and output levels that lead to the greatest profit. How are Wages Determined Theories of Wages Determination ... How are Wages Determined Theories of Wages Determination: There are various theories of wages which lave been put forward by different economists from time to time but none of them is free from criticism. Labour markets: the effect of introducing a trade union ... 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marginal productivity theory of distribution

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