Re: [OPE-L:3352]:
I wrote:
> o assume constant wages from one period to the next.
I suppose, following Alan's advice, I should specify some of the
additional assumptions. They include:
a) the working day and workweek remains the same (and, thereby,
absolute s is constant).
b) the intensity of labor remains constant.
c) capacity utilization isn't considered.
d) factors that affect whether the output level remains the same,
rises, or falls (e.g. demand) aren't considered.
All of the above are simplifying assumptions and can be relaxed if we want
to further examine the causes and effects of technical change in different
branches of production. However, it is clear that all of the above are
variables that would have an affect on the v and c demanded by the firm.
In Solidarity,
Jerry