BIHAR- New Reservation Policy

than Schumpeterian profit. While Schumpeter's definition of profit excludes interest, depreciation, etc, on fixed capital these are included in Mathur's technological surplus. This surplus is almost like Ricardian rent. It is, like rent, based on differential efficiency of different units. However, the similarity ends there. As in the long run, as more and more firms enter the industry with most recent technique firms which were earning zero 'rent' before, the marginal firms, are forced out of the industry. Though this technological surplus may look like Marshallian quasi rent, in the latter case a new firm has no particular advantage over its predecessors whereas this is not the cast in technological surplus. We thus see that at any given moment in time a spectrum of technology exists in an economy working simultaneously and having different productivities and profits. Out of these, the least efficient technique is the one determining the price structure. The marginal technique is in operation because demand at the price structure associated with that technique exceeds the total capacities of all the more efficient techniques.