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

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


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--

Marc Fawzi
Facebook: http://www.facebook.com/people/Marc-Fawzi/605919256
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-- 

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: projekt oekonux.de
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