Reply to Bertram Schefold.

The article offers a response to a commentary made by Bertram Schefold on the authors' paper. It states that the neoclassical theory of perfect competition may be impressive from the viewpoint of mathematical rigor and formal results, but it is empty from an empirical viewpoint. According to the authors, their framework is compatible with Schumpeterian and Marxian ideas of technological evolution in contrast to the Sraffian approach.