Matter matters: productivity, resources, and prices
AbstractTastes and technology are the ultimate givens of standard economics. Their interaction is mediated by the marginal principle. This approach is unsuitable to explain the nature and magnitude of overall profits and their distribution within the business sector. The present paper therefore takes a quite different analytical route. The standard behavioral axioms are replaced by objective structural axioms and the standard production function is replaced by a sequential production function. From this new formal basis two exemplary factor prices, the product price, and the real wage are derived under the conditions of market clearing and equal profit ratios.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 34225.
Date of creation: 20 Oct 2011
Date of revision:
New framework of concepts; Structure-centric; Axiom set; Factors of production; Substitution; Profit redistribution; Bargaining margin; Equal profit ratios; Metachoice;
Find related papers by JEL classification:
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
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