At 07:38 AM 2/15/97 -0800, Jerry(OPE-L:4223) wrote:
>John wrote in [OPE-L:4222]:
>
>> Given that capitalists choose techniques on what
>> basis do they do so? We assume that the choice
>> will be based upon the various anticipated rates of
>> profit. But how do they figure the rate of profit?
>
>
>It might be useful here to distinguish between the expected rate of
>profit calculated _ex ante_ and the rate of profit observed _ex post_.
>
>
John responds:
I do not think this is at all useful to the issue at hand. That is,
the question I raised applies to rate of profit calculations whether
they are carried out ex-ante or ex-post. However, I do think you
raise issues that need to be dealt with eventually. But, not knowing
how the rate of profit is computed even when we know all the prices
makes the issues you raise even more complicated. That is, for each
case we would have to compute all the various possibilities.
John
>