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FDR's "defoo" campaign is deeply troubling. But accusing a group of being a "CULT" simply because they disagree with you is over the line. Thread locked.
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He proposed a tax on holding money. He's mentioned by Mises in passing. Hayek dealt with two other underconsumptionists, and some of his arguments may apply to Gessel. See: http://mises.org/daily/2804
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There is no such thing as Agreggate Demand, as there is no such thing as a "price level" or a meaningful measure of "real output". You can aggregate individual demand schedules for a single good into a market demand schedule for that good. But there is no meaningful way of aggregating demand schedules for multiple goods into a single
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Yes, that sounds right. In case you missed it, I answer you're original question in the previous post .
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All that being said, the iscost-isoquant approach is wrong-headed. The problem with the analysis is that it misunderstands the nature of entrepreneurial decisions. It takes output as given, and portrays profit maximization as simply a matter of achieving that output while minimizing costs. The entrepreneur's role is not merely to minimize costs
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Alternatively, it can indicate, at a given cost, the maxiumum amount of output (the greatest isoquant touching the given isocost).
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" After all, isn't the point of the isocost-isoquant diagram that you can analyse changes in the relative prices of the inputs, and how this impacts on output?" Consumariat, No, the point of the diagram is to illustrate that for any given output (isoquant), the least-cost combination of inputs is the point of tangency on the isocost curve
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" the isoquant (the curved line) shows how much output it is possible to produce at that particular combination of labour and capital. " Did your teacher tell you that? You have it backward. The isoquant shows the possible combinations of labour and capital for producing a given output.
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" If things aren't homogenous then there are no diminishing returns. If there are no diminishing returns then something is wrong with Menger's use of marginals in his theory of value." Michelangelo, Menger's theory of value has nothing to do with the law of diminishing returns, which is distinct from the law of diminishing marginal
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Please move any further thread deletion discussion to the Member Issues forum .