Price Formation And Balance Relationships
Changes in enterprise cost of production influence only the profitability and finances of the individual enterprise. Changes in wholesale prices, on the other hand, are reflected in the economics of production, in finances, and in the profitability of many enterprises and branches acquiring or selling products for the new prices. When wholesale prices are raised, there is an increase in the proceeds (and hence in profitability) of the manufacturing enterprises and a corresponding increase in the outlays of customer-enterprises. As a result of a "chain reaction," price changes affect the economics of all stages of production all the way down to the manufacture of the final product. The total increase or decrease in proceeds resulting from price changes on products sold equals the total reduction or increase in outlays entailed in the acquisition (purchases) of these products. Such a monetary balance equality determines the essential relationships in the national economy and reveals the basis interrelations among branches and enterprises. This equality is the result of the nonuniform dynamics of outlays, and in an economic sense reflects the unity of outlays and proceeds that is manifested in distributive and redistributive relations in the case of planned changes in price.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 13 (1970)
Issue (Month): 4 (August)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106047|
When requesting a correction, please mention this item's handle: RePEc:mes:prectr:v:13:y:1970:i:4:p:21-35. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.