Thanx Steve for coming to the rescue - I'm new at this 'debunking' business, and any help with it much appreciated :-) Nicky ------------------ >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 >UNIVERSITY WESTERN SYDNEY >LOCKED BAG 1797 >PENRITH SOUTH DC NSW 1797 >Australia >s.keen@uws.edu.au 61 2 4620-3016 Fax 61 2 4626-6683 >Home 02 9558-8018 Mobile 0409 716 088 >Home Page: http://bus.uws.edu.au/steve-keen/ > http://www.debunking-economics.com > http://www.stevekeen.net > ---------------------------------- Nicola Mostyn (Taylor) Faculty of Economics Murdoch University Australia Telephone: 61-8-9385 1130
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