Re: Profit and Value, was: Re(2): [ox-en] extrinsic motivation = coercion
marc fawzi <[email protected]>
| Newsgroups | gmane.politics.oekonux.english |
|---|---|
| Message-ID | <[email protected]> |
Expanded reply > Re: "true equilibrium" > > Supply can be limited artificially to raise price which will not be > the actual (non-artificial) equilibrium price, yet it is always called > "equilibrium price" by economists! which undermines the truth in most > cases. > > "True equilibrium" is when the supply is made sustainably abundant, > i.e. when anyone who wants any quantity of the given good/service can > have it at the cost (plus fixed margin of profit if we want to provide > for 'possibility' [of new inventions, reinvestment of profit in > community, etc] not just sustainability of production) > Diego wrote: << you don't need to add anything, you will have a profit (or not) as a consecuense of your dynamics, costs, etc. (if you are an individual firm) >> Not true if the "cost" is the "median cost" and you happen to have a cost that is higher than or equal to the median cost (calculated from cost-of-production data provided all suppliers) ... In this case you would have to make your production more efficient ... and how can you do that if what you put in is what you get out ? (i.e. at cost) You put in $10 in cost and you get out $10 and you put it in again and so on, but you need $12 so you can use the extra $2 to make your production process more efficient. In the system I'm using as the context of this explanation and all my arguments, there is no individually set price.. the median cost calculated from producer supplied data becomes the "price" and what I'm saying is that such price should include a fixed profit margin so that there can be investment in new products as well as investment in more efficient production... > On Thu, May 7, 2009 at 4:55 AM, Diego Saravia <[email protected]> wrote: >> [Converted from multipart/alternative] >> >> [1 text/plain] >>> >>> if you have a true demand-supply equilibrium for a given category/type of >>> good service >> >> >> is there any way to not have that? >> >> what is "true" for you >> >> >>> >>> (i.e. where anyone who wants to get any quantity of >>> any good/service can do so at the [median] cost of that good/service), >> >> >> the price of a good in a competitive market is a result of demand and supply >> equilibrium >> >> if the price is not infinitum or cero you will have this kind of equilibrium >> >> >> >>> >>> if you add a fixed margin of profit you can then use that to invest in >>> new goods/services that you wouldn't otherwise think of investing in >> >> >> you don't need to add anything, you will have a profit (or not) as a >> consecuense of your dynamics, costs, etc. (if you are an individual firm) >> >> >> >> -- >> Diego Saravia >> [email protected] >> NO FUNCIONA->dsa-AySywPH+/[email protected] >> >> >> [2 text/html] >> _________________________________ >> Web-Site: http://www.oekonux.org/ >> Organization: http://www.oekonux.de/projekt/ >> Contact: [email protected] >> > > > > -- > > Marc Fawzi > Facebook: http://www.facebook.com/people/Marc-Fawzi/605919256 > LinkedIn: http://www.linkedin.com/in/marcfawzi > -- Marc Fawzi Facebook: http://www.facebook.com/people/Marc-Fawzi/605919256 LinkedIn: http://www.linkedin.com/in/marcfawzi _________________________________ Web-Site: http://www.oekonux.org/ Organization: http://www.oekonux.de/projekt/ Contact: [email protected]