We discussed modes of production -- hunter-gatherer- pastoral, agricultural, mercantile, industrial. The term "mode of production" always describes not only the main production activity, but the social relations of production. For example, the hunter-gatherer mode of production (where small family groups obtain their subsistence from naturally occurring fruits, grains, and wildlife, etc.) generally occurs in an egalitarian, non-hierarchical social structure in which land ownership is communal rather than individual. By contrast, the agricultural mode of production typically occurs in a hierarchical social structure in which land ownership is individual, but that tends to be concentrated in the control of a very few, while the producers of agricultural products tend to be non-landowners who pay rent in the form of a portion of the annual yield from the land the landowners allow them to cultivate. Which of these two modes of production is likely to yield more income?

As explained earlier, in hunter-gatherer mode, the asset is owned community wise. Hence, the total of all produce is equally distributed amongst the community members. This results in an averaging dilemma. Averaging dilemma refers to the averaging nature of the problem, meaning even if a community member works out of turn, he is not rewarded for the same.

However, in the agricultural mode of production, due to class hierarchy farmers would be enthused to work hard in search of more share of the produce. This results in increased productivity and yield since all farmers would engage in share maximisation thus pushing up total yield and income.