John Bates Clark

John Bates Clark John Bates Clark was an American economist who lived from 1847-1938. He played an primal role in the development of marginal productivity, and had a great form on the development of scotch thought in the coupled States. Clark was educated at Amherst College and at the University of Heidelberg in Germany. He taught at Carlton College in Northfield, Minnesota from 1875 to 1881. He then moved on to nurture at Smith College, Amherst, Johns Hopkins and Columbia from which he retired in 1923. In formulating the Neoclassical theory of the firm, John Bates Clark took over the classical categories of lend, labor, and chief city and simplified them in two ways, this simplification was the theory of marginal productivity. First, he assumed that all labor is homogenous, which meant that one labor hour is a perfect substitute for any other labor hour, just now when marginal productivity was decreasing, the perseverance found it more profitable to replace labor with machinery. Clark believed that to make a sound economy return had to be equal to the marginal productivity of labor. This was also undecomposed to both the industry and the labor.

Secondly, Clark ignored the distinction between land and capital, grouping together both kinds of non-human inputs under the general term capital, which he then assumed that the broadened capital is homogenous. John took this Neoclassical come up one step further than others in applying it to the business firm and the maximization of profits. One of the results was a theory of the distribution which demonstrated that market outcomes were just. Clark also believed that technological change would lead to an increase in the modular of living which he felt was one of the chief goals of any economic system. He felt that with this technological change, labor would be more amentaceous and lead to higher profits for industry. When the labor would see that industry was making higher profits, they would demand its... If you want to get a full essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!