ENTREPRENEURSHIP

Detailed explanation-1: -Ricardo suggested that a good’s value is determined by the labor hours invested in its production.

Detailed explanation-2: -The Ricardian Model describes a world in which goods are competitively produced from a single factor of production, labor, using constant-returns-to-scale technologies that differ across countries and goods.

Detailed explanation-3: -In the Ricardian theory it is assumed that land, being a gift of nature, has no supply price and no cost of production. So rent is not a part of cost, and being so it does not and cannot enter into cost and price. This means that from society’s point of view the entire return from land is a surplus earning.