Don't get too carried away on concepts from the neoclassical theory of the
firm Nicky!
Check my web site www.debunking-economics.com for the simple maths needed
to trash the whole litany.
Steve
At 03:55 PM 5/2/01 Wednesday, you wrote:
>One question Jurriaan:
>
> > Further Marx doesn't discuss how, in inflationary times or under
> > monopolistic conditions, businesses can simply raise their output prices to
> > offset declining returns.
>
>I don't follow this; if you don't mind can you explain it to me. Surely,
>monopolistic firms *always* operate on the elastic part of the demand curve
>- therefore, total revenue could not be increased by raising prices... The
>opposite holds true. It is impossible for the monopolistic firm to set
>*any* old price, at least if we assume they are profit maximisers. Am I
>wrong about this?
>
>Nicky
>
>
>
>----------------------------------
>Nicola Mostyn (Taylor)
>Faculty of Economics
>Murdoch University
>Australia
>Telephone: 61-8-9385 1130
Dr. Steve Keen
Senior Lecturer
Economics & Finance
Campbelltown, Building 11 Room 30,
School of Economics and Finance
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