[OPE-L:5479] Re: Re: Re: Re: Counteracting factors

From: nicola taylor (n.taylor@student.murdoch.edu.au)
Date: Wed May 02 2001 - 02:21:38 EDT


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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