[OPE-L:4226] Re: depreciation and demand

john erns (ernst@pipeline.com)
Sat, 15 Feb 1997 15:18:17 -0800 (PST)

[ show plain text ]

At 02:02 PM 2/15/97 -0800, you wrote:
>John wrote in #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?
>Then in #4224, he wrote:
>> 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.
>What assumptions are you making regarding capacity utilization?
>Please specify.

John responds:

What difference does it make if I do not know how to calculate the
rate of profit? In 4222, I suggested two ways of doing it; each
gave a difference answer. Make any assumption you want relative
to capacity utilization; look at the prices of outputs; the amounts
invested; and you still have two ways (there are more given different
schemes of depreciation).