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CONTINUITY AND THE "RATE OF RETURN".
- Source :
- Economic Journal; Mar71, Vol. 81 Issue 321, p120-122, 3p
- Publication Year :
- 1971
-
Abstract
- The article focuses on the concept of continuity and the rate of return. An economist describes the rate of return with the rate of profit at a switch point. With the same wage rate, net profit per man is higher, therefore the cost of capital equalizes the rate of profit. A more schematic treatment of continuity would allow to say that yet small, the difference between two adjacent wage-rates, there is always one method that is eligible to both, with the suitable pair of rates of profit and patterns of prices. A variation in wage rate brings a different set of prices into play. The difference between these two concepts arises from the difference in the arguments in which they occur. The one-commodity economy was devised to allow the neo-classical allegory in which the rate of profit equates to the marginal product of capital.
Details
- Language :
- English
- ISSN :
- 00130133
- Volume :
- 81
- Issue :
- 321
- Database :
- Complementary Index
- Journal :
- Economic Journal
- Publication Type :
- Academic Journal
- Accession number :
- 4543090
- Full Text :
- https://doi.org/10.2307/2229760