Re: [OPE] socialist planning in capitalist firms

Date: Mon Mar 29 2010 - 16:13:28 EDT

> Diminishing returns to management are yield rates that after a
> certain point fail to increase proportionately and start to
> decrease to additional outlays of management. Should certain
> degree of centralization reached this bureaucratic
> inefficiencies start to increase disproportionately.
Hi Alejandro:
I guess you mean that there is an "optimal" scale for management beyond which there are 'diminishing returns to management"?
While widely practiced by planners in the USSR and elsewhere, I'm
not convinced that optimization theory is appropriate for the
analysis of economics, including the economics of
enterprises (even though it is used by mainstream microeconomists in operations research, linear programming, et al).
In solidarity, Jerry

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Received on Mon Mar 29 16:49:06 2010

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