>
> John now says:
>
> Ok. I'll assume a price reduction in the output of
> the accountant. Still, does the price reduction
> itself force you to upgrade? Was the investment
> in the PC completely recovered by the time it was
> replaced? Was it not a "mistake" not to take
> into account "moral depreciation" when the PC
> was introduced into the process of production?
>
Maybe not. If the prices fall low enough you may not be able to
compete with the old PC [because the 286 is so much more productive].
Bygones are bygones, as Jevons said. To remain in business, you may
have to invest.
>
-- Michael Perelman Economics Department California State University Chico, CA 95929Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu