Re: [OPE-L] basics vs. non-basics

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Thu Oct 06 2005 - 06:00:09 EDT


Ajit
_____________
May be I don't understand your point. But I don't see
any problem here. All other inputs are bought in the
market by the bean producr and so there is no question
of imputation here. They cost what they cost. If those
producers have used beans in their production, they
measured its cost by the price they paid for it. What
is the problem here? I don't see any problem here. In
any case, remember that the bean problem arise because
the proportion of beans as inputs in the production of
beans is unusually high. Let say, if the normal rate
of profits is 10%, then if it takes 100 units of beans
as input to produce 110 units of beans, then you get
into the bean problem. Cheers, ajit sinha


-----------
I think the issue is that there might be
an indirect feedback relationship here.
Suppose commodity A is non basic.
It uses commodity B in its input but B is also
non basic, and B uses commodity A in its own production

In this case B has to purchase A at real not imputed cost

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