Re: Profit and Value, was: Re(2): [ox-en] extrinsic motivation = coercion

• From: marc fawzi <marc.fawzi gmail.com>
• Date: Thu, 7 May 2009 05:02:01 -0700

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)



On Thu, May 7, 2009 at 4:55 AM, Diego Saravia <diego.saravia gmail.com> wrote:

[Converted from multipart/alternative]

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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
Diego.Saravia gmail.com
NO FUNCIONA->dsa unsa.edu.ar


[2 text/html]
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-- 

Marc Fawzi
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